The Ernie Company acquired the Bert Company in January of 2016.Ernie's balance sheet included $700,000 of assets,$250,000 of liabilities and equity of $450,000.Ernie agrees to assume the liabilities and pay $480,000 to acquire Bert.An independent appraiser assessed the fair value of Bert's assets to be $630,000.Indicate whether each of the following statements about this transaction is true or false.
_____ a)Ernie's entry to record the transaction includes a debit to the assets for $700,000.
_____ b)Ernie's entry to record the transaction includes a debit to liabilities for $250,000.
_____ c)Ernie will recognize $100,000 of goodwill in recording the acquisition of Bert.
_____ d)It is impossible for Ernie to estimate the length of life for goodwill.
_____ e)The goodwill will be amortized in the same manner as patents.

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The Answer of The Ernie Company acquired the Bert Company in January of 2016.Ernie's balance sheet included $700,000 of assets,$250,000 of liabilities and equity of $450,000.Ernie agrees to assume the liabilities and pay $480,000 to acquire Bert.An independent appraiser assessed the fair value of Bert's assets to be $630,000.Indicate whether each of the following statements about this transaction is true or false.
_____ a)Ernie's entry to record the transaction includes a debit to the assets for $700,000.
_____ b)Ernie's entry to record the transaction includes a debit to liabilities for $250,000.
_____ c)Ernie will recognize $100,000 of goodwill in recording the acquisition of Bert.
_____ d)It is impossible for Ernie to estimate the length of life for goodwill.
_____ e)The goodwill will be amortized in the same manner as patents.

The Ernie Company Acquired the Bert Company in January of 2016.Ernie's