Discuss how should we account for an unrecorded patent

Assignment Help Accounting Basics
Reference no: EM131772178

We recently decided to sell one of our divions to a Canadian company since we have decided not to focus on that particular line of business. Negotiations are still ongoing, however it looks like the Canadian Company is willing to pay an additional $1.5 million on top of the fair value of identifiable assets agreed by both of us!

- If this deal does not go through, can we recognise this $1.5 goodwill in our books?

- How should we account for an unrecorded Patent which we will transfer to them?

-In return the Canadian Company will issue some shares as well! This means that we will be shareholders and owenrs of the company, but how do we account for these shares?

Reference no: EM131772178

Questions Cloud

Health care financial manager over the next five : Reflecting on the various topics discussed throughout the course, examine two (2) specific changes that you anticipate in the role of the health care
Determining the time period of the risk : Refer to News Story 10 in the Appendix and on the CD, "Churchgoers live longer, study finds." One of the statements in the news story.
What is the conversion ratio : The bond pays $60 per year in interest and is selling in the market for $965. It matures in 7 years. Market rates are 10% annually.
What is the conversion ratio : The bond pays $60 per year in interest and is selling in the market for $965. It matures in 7 years. Market rates are 10% annually.
Discuss how should we account for an unrecorded patent : We recently decided to sell one of our divions to a Canadian company since we have decided not to focus on that particular line of business
Calculate a numerical value for each of the given problem : Refer to the Additional News Source accompanying News Story 10 on the CD, "‘Keeping the faith' UC Berkeley researchers links weekly church attendance to longer.
Equivalent before-tax return : If an investor is in the 33% marginal tax bracket and can purchase a municipal bond paying 7.5%, what would the equivalent before-tax return.
Explain the differences between the brownouts and blackouts : Explain the differences between the brownouts and blackouts. Length: 5 pages.
Prepare the journal entries to fully reflect transactions : The invoice was paid in full on October 4. (Assume a perpetual inventory system). Prepare the journal entries to fully reflect these merchandise transactions

Reviews

Write a Review

Accounting Basics Questions & Answers

  Current stock price what would be the dividend yield?

Currently Chester is paying a dividend of $16.10 (per share). If this dividend were raised by $3.64, given its current stock price what would be the Dividend Yield?

  Assume that schellhamer company decides to estimate its bad

a what amount of bad debts expense will schellhamer company report if it uses the direct write-off method of accounting

  Calculate supervalues free cash flows for next five years

Calculate Supervalue's free cash flows for the next five years? You may provide your answer using the attached template

  Maximum price pay for the bond

If you require a 7 percent nominal yield to maturity on this investment, what is the maximum price you should be willing to pay for the bond?

  Prepare whispering journal entries

Prepare Whispering's journal entries for (a) the purchase of the investment, and (b) the receipt of annual interest and discount amortization

  Polaris, and arctic cat are competitors

Piaggio (www.piaggio.com), Polaris, and Arctic Cat are competitors in the global market place. Selected results from these companies follow.

  Compute the return on investment for the toro division

Total divisional assets are $800,000. The firm's minimum required rate of return is 10%. ompute the Return on investment for the Toro division

  Larry and jessica form the lampj prtnership larry

larry and jessica form the lampj prtnership. larry contributes property with an adjusted basis of 70000 a fair market

  Number of shares outstanding

A corporation has 40,000 shares of $25 par value stock outstanding. If the corporation issues a 4-for-1 stock split, the number of shares outstanding after the split will be

  This year ryan used his personal auto for several long

ryan is self-employed. this year ryan used his personal auto for several long business trips. ryan paid 2190 for

  What are the estate tax consequences of the policy

Carl is the sole shareholder of Production Corporation. What are the estate tax consequences of the policy when Carl dies

  Compute the depreciation expense for each of the four years

On January 1, 2014, Bob's Machining Co. purchased a compressor and related installation equipment for $69,900. Compute the depreciation expense

Free Assignment Quote

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!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd