Reference no: EM132506226

The following is the balance sheet information of Huaxin Company on January 1, X7:

Net accounts receivable $ 30,000 Current liabilities         $ 70,000

Inventories 60,000 Non-current liabilities                         92,000

Land                                                                        90,000

Equity                                                                   168,000

Plant and equipment net                                             150,000

Total assets 330,000 Total liabilities and equity                330,000

X7

On January 1, 2014, Taiwan New Company purchased Huaxin Company at a price of $ 220,000. The market price of assets on that day was as follows:

Net accounts receivable                              $ 20,000

stock                                                        $ 65,000

land                                                           130,000

Plant and equipment net                               150,000

Trial work:

Question (1) Calculate the amount of goodwill purchased by Taixin Company.

Question (2) Purchase entries of Huaxin Company.

Question (3) Amortization of goodwill in X7.