Reference no: EM132739912
Questions -
Q1. On June 30, 2020, Blue Ltd. exchanged 2,000 Ivy Corp. common shares for a patent owned by Jazz Corp. The Ivy shares were acquired in 2018 for $125,000. At the exchange date, Ivy common shares have a fair value of $80 per share, and the patent had a carrying value of $280,000 on Jazz's books. Blue should record the patent at?
a) $280,000.
b) $160,000.
c) $155,000.
d) $125,000
Q2. Icicle Corp.'s average annual net income is $50,000 above the average for Icicle's industry. Snowy is interested in purchasing Icicle. Assuming Snowy estimates goodwill by capitalizing excess earnings at 13%, the estimated goodwill (to the nearest dollar) is?
a) $753,846.
b) $685,162.
c) $384,615.
d) $0.
Q3. At December 31, 2020, Walker Corp.'s general ledger includes the following account balances:
Copyrights $50,000
Deposits with advertising agency (will be used to promote goodwill) 32,000
Discount on bonds payable 72,700
Excess of cost over fair value of identifiable net assets of acquired subsidiary 578,000
Trademarks 102,000
In the preparation of Walker's balance sheet as of December 31, 2020, what should be reported as total intangible assets?
a) $152,000
b) $730,000
c) $762,000
d) $802,700
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