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$50,330 $203,110 89,780 241,280 107,140 $444,390 40,880 74,790 70,120 11,350 $44

ID: 2479762 • Letter: #

Question

$50,330

$203,110

89,780

241,280

107,140

$444,390

40,880

74,790

70,120

11,350

$444,390

Account Titles and Explanation

Debit

Credit

Account Titles and Explanation

Debit

Credit

On July 1, 2014, Brigham Corporation purchased Young Company by paying $257,540 cash and issuing a $150,480 note payable to Steve Young. At July 1, 2014, the balance sheet of Young Company was as follows.
Cash

$50,330

Accounts payable

$203,110

Accounts receivable

89,780

Stockholders’ equity

241,280

Inventory

107,140

$444,390

Land

40,880

Buildings (net)

74,790

Equipment (net)

70,120

Trademarks

11,350

$444,390


The recorded amounts all approximate current values except for land (fair value of $81,000), inventory (fair value of $125,380), and trademarks (fair value of $15,344).

Explanation / Answer

a) Cash 50300

Receivables 80780

Inventory 125380

Land 81000

Buildings 74790

Equipment 70120

Trademarks 15344

Goodwill 113416

                                            Cash 257540

                                           Accounts payable 203110

                                           Notes payable 150480

b) Amortization expenses    2164

                  trademark                          2164