Calculate the amount of goodwill acquired prepare the

Reference no: EM13395444

Cafe Ole' Company acquired a fast-food restaurant for $1,500,000. The fair market values of the assets acquired were as follows. No liabilities were assumed.

Equipment $380,000

Land $200,000

Building $680,000

Franchise (5-year life) $120,000

Required:

a. Calculate the amount of goodwill acquired

b. Prepare the journal entry to record the amortization of the franchise fee at the end of year 1.

Reference no: EM13395444

Questions Cloud

Create the plan for managing your debt how many sources of : develop a plan for managing your debt. how many sources of debt do you current have and what are the balances owed on

Which statement regarding project selection and screening : 1. a project typically has .a. a defined start and end dateb. a defined start date but no defined end datec. no defined

Create pro forma income statement for ebit level solved for : abe forrester and three of his friends from college have interested a group of venture capitalists in backing their

How do you explain the use of time value of money in : how do you explain the use of time value of money in business? what considerations are made when calculating tvm? how

Calculate the amount of goodwill acquired prepare the : cafe ole company acquired a fast-food restaurant for 1500000. the fair market values of the assets acquired were as

Can you think of any factors which are not being considered : 1 in 2010 under its watersense program the epa began promoting showerheads that produce still-lower flows of 2 gallons

Personnel department records indicate the turnover rate of : nuclear plant staffing problem south central utilities has just announced the august 1 opening its second nuclear

The completed financial statement columns of the worksheet : the completed financial statement columns of the worksheet for woods company are shown below.account no.account

Lear wishes to finance all fixed assets and half of its : lear inc. has 800000 in current assets 350000 of which are considered permanent current assets. in addition the firm

Reviews

Write a Review

Required(*) Message

Accounting Basics Questions & Answers

How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest. How much control does the Fed have over this longer real rate?

Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

Accounting problems

Accounting problems, Draw a detailed timeline incorporating the dividends, calculate the exact Payback Period b) the discounted Payback Period. the IRR, the NPV, the Profitability Index.

Theory of interest - term structure of interest rates

Term Structure of Interest Rates

Write a report on internal controls

Write a report on Internal Controls

Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

Liquidity and profitability

Distinguish between liquidity and profitability.

What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

Capm and venture capital

CAPM and Venture Capital

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

User Account

All Pages