Red Group Week 1

Red Group Week 1 - P12-4(a Continuing Operations...

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P12-4(a) Continuing Operations Amortization expense 8,000 (80,000/10years) 14,000 195,000 Expense immediately Other expenses 77,000 Expense immediately Total expenses 294,000 P12-4(b) Building 280,00 Accumulated Depreciation 14,000 Land 60,000 Intangible Assets - Patent* 66,000 Patents [80,000-[(80,000/120months)*21mnths]
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P12-6(a) 1) Trade name has an indefinite life-therefore it cannot be amortized. 2)Copyright has a life of 40 years, purchase price is 20,000, therefore amortization per year is $500. however as it 3)Purchase price for OldMaster is $750,000. However FairValue is $800,000->further computation needs to be do 1)Purchase price 750,000 2)Fair Value of net Assets {note 1} 600,000 {note 1} Fair value of Assets = 800,000 Less: Fair Value of Liabilities 200,000 Fair value of Net assets* $600,000 3) Good will 150,000 Purchase price 750,000 Less:Fair Value of net assets 600,000 Goodwill 150,000 Balance Sheet - Intangible Assets Tradename 10,000.00 Copyright - After Amortizion 250.00 $20,000-($20,000/40year)*1/2year Goodwill
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Red Group Week 1 - P12-4(a Continuing Operations...

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