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Financial & Managerial Accounting 3rd Edition by Charles Horngren,Harrison, Walter,Suzanne Oliver
Edition 3ISBN: 978-0132962339Financial & Managerial Accounting 3rd Edition by Charles Horngren,Harrison, Walter,Suzanne Oliver
Edition 3ISBN: 978-0132962339 Exercise 9
Accounting for goodwill
When one media company buys another, goodwill is often the most costly asset. TMC Advertising paid $170,000 to acquire Seacoast Report , a weekly advertising paper. At the time of the acquisition, Seacoast Report's balance sheet reported total assets of $130,000 and liabilities of $70,000. The fair market value of Seacoast Report's assets was $100,000.
Requirements
1. How much goodwill did TMC Advertising purchase as part of the acquisition of Seacoast Report
2. Journalize TMC Advertising's acquisition of Seacoast Report.
When one media company buys another, goodwill is often the most costly asset. TMC Advertising paid $170,000 to acquire Seacoast Report , a weekly advertising paper. At the time of the acquisition, Seacoast Report's balance sheet reported total assets of $130,000 and liabilities of $70,000. The fair market value of Seacoast Report's assets was $100,000.
Requirements
1. How much goodwill did TMC Advertising purchase as part of the acquisition of Seacoast Report
2. Journalize TMC Advertising's acquisition of Seacoast Report.
Explanation
Verified
Verified
Journalizing is the chronological accoun...
Financial & Managerial Accounting 3rd Edition by Charles Horngren,Harrison, Walter,Suzanne Oliver
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