On January 1,2016,Milwaukee Company purchased Minneapolis Company,paying $1,200,000 cash.The fair value of Minneapolis's assets was $1,080,000,and it had liabilities of $100,000.The book value of the company's assets was $980,000.
Required: a)Prepare Milwaukee's journal entry to record the acquisition of Minneapolis Company.
b)At the end of 2018,Milwaukee concluded that the value of its goodwill (associated with the acquisition of Minneapolis)had declined by $30,000.Prepare the journal entry to record this decrease in value.

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The Answer of On January 1,2016,Milwaukee Company purchased Minneapolis Company,paying $1,200,000 cash.The fair value of Minneapolis's assets was $1,080,000,and it had liabilities of $100,000.The book value of the company's assets was $980,000.
Required: a)Prepare Milwaukee's journal entry to record the acquisition of Minneapolis Company.
b)At the end of 2018,Milwaukee concluded that the value of its goodwill (associated with the acquisition of Minneapolis)had declined by $30,000.Prepare the journal entry to record this decrease in value.

On January 1,2016,Milwaukee Company Purchased Minneapolis Company,paying $1,200,000 Cash