Joyful sound music company purchased the net assets i

Assignment Help Accounting Basics

Reference no: EM13615546

Joyful Sound Music Company purchased the net assets (i. e.,assets minus liabilities) of Metrodome Company for $ 845,000.Metrodome is a retailer of music, instruments, and related items.Its net assets have been carried on its own books at a total of $530,000. An appraisal of all of Metrodomes assets and liabilitiesrevealed a net fair market value of $ 783,000. Joyful is willing topay extra because of Metrodomes very loyal retail customers, mostof whom have dealt exclusively with the company for more than 30years.

(a) What is the amount of goodwill that Joyful should record at acquisition of Metrodome?

(b) What might cause the purchased goodwill in this situation to become impaired?

Reference no: EM13615546

Questions Cloud

A presidential candidate plans to begin her campaign by : a presidential candidate plans to begin her campaign by visiting the capitals in 4 of 47 states. what is the

Which method would you prefer to use for financialreporting : clary jensen farms purchased power equipment with an expecteduseful life of four years or 1000 hours of usage. the

Find the 90 confidence interval for the mean reduction give : salt-free diets are often prescribed to people with high blood pressure. the following data values were obtained from

Object a which has been charged to 244 nc is at the origin : object a which has been charged to 24.4 nc is at the origin. object b which has been charged to -18.3nc is at xy0 cm

Joyful sound music company purchased the net assets i : joyful sound music company purchased the net assets i. e.assets minus liabilities of metrodome company for

Show how information about the printing machine : leslie company sells business stationery imprinted with acustomers business name and address. to do this itpurchased a

An aluminum baseball bat has a length of 0619 m at a : an aluminum baseball bat has a length of 0.619 m at a temperature of 16.7degc. when the temperature of the bat is

Find the 95 confidence interval on the population mean for : a random sample has been taken from a normal distribution. output from a software package is given belowvariable xn

A 0250-mm-diameter silver wire carries a 400ma current what : a 0.250-mm-diameter silver wire carries a 40.0ma current. what are a the electric field and b the electron drift speed

User Account

All Pages