Caffeine Company’s 12/31/24 balance sheet reports assets of…
Caffeine Company’s 12/31/24 balance sheet reports assets of $7,000,000 and liabilities of $2,800,000. All of Caffeine’s assets’ book values approximate their fair value, except for land, which has a fair value that is $420,000 higher than its book value. On 12/31/24, Beverage Corporation paid $7,140,000 to acquire Caffeine Co. What amount of goodwill should Beverage Corp. record as a result of this purchase?
Read DetailsOn January 1, 2024, Scott signed an agreement to operate as…
On January 1, 2024, Scott signed an agreement to operate as a franchisee of Dunkin Muffins, Inc. for an initial cost of $150,000. Scott estimates the useful life of the franchise to be 15 years and uses the straight-line method of amortization. The $150,000 should be [Record]. After the transaction is initially recorded, [Amort].
Read DetailsGardner Corporation purchased a truck on March 1, 2024 for $…
Gardner Corporation purchased a truck on March 1, 2024 for $75,000. The truck is estimated to have a salvage value of $3,000 and a useful life of 120,000 miles. It was driven 18,000 miles in 2024 and 32,000 miles in 2025. What is the depreciation expense for 2024?
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