On January 1, 2013, Flintstone Company purchased Rubble Company, paying $600,000 cash. The fair value of Rubble's assets was $540,000, and it had liabilities of $50,000.
Required:
a) Prepare Flintstone's journal entry to record the acquisition of Rubble Company.
b) At the end of 2015, Flintstone concluded that the value of its goodwill (associated with the acquisition of Rubble) had declined by $65,000. Prepare the journal entry to record this decrease in value.

Question

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The Answer of On January 1, 2013, Flintstone Company purchased Rubble Company, paying $600,000 cash. The fair value of Rubble's assets was $540,000, and it had liabilities of $50,000.
Required:
a) Prepare Flintstone's journal entry to record the acquisition of Rubble Company.
b) At the end of 2015, Flintstone concluded that the value of its goodwill (associated with the acquisition of Rubble) had declined by $65,000. Prepare the journal entry to record this decrease in value.

On January 1, 2013, Flintstone Company Purchased Rubble Company, Paying