$51,510 $202,960 91,400 244,100 107,060 $447,060 40,540 74,980 70,090 11,480 $44
ID: 2720200 • Letter: #
Question
$51,510
$202,960
91,400
244,100
107,060
$447,060
40,540
74,980
70,090
11,480
$447,060
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Account Titles and Explanation
Debit
Credit
Account Titles and Explanation
Debit
Credit
??
On July 1, 2014, Brigham Corporation purchased Young Company by paying $251,160 cash and issuing a $151,710 note payable to Steve Young. At July 1, 2014, the balance sheet of Young Company was as follows.Cash
$51,510
Accounts payable$202,960
Accounts receivable91,400
Stockholders’ equity244,100
Inventory107,060
$447,060
Land40,540
Buildings (net)74,980
Equipment (net)70,090
Trademarks11,480
$447,060
The recorded amounts all approximate current values except for land (fair value of $80,730), inventory (fair value of $127,130), and trademarks (fair value of $17,560).
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Explanation / Answer
**Amortization expense = (17560 - 4800 )/4
= 12760 /4
= $ 3190 per year
Amortization for 2014 = 3190 * 6/12 [1july -31dec]
= 1595
Title Debit credit Amortization expense 1595 Accumulated Amortization /Trademark (If accumulated amortization account is not maintained) 1595 [being amortization expense recorded]Related Questions
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