Exercises E 10-5 & amp; E 10-7, bother P 10-4 & P 10-11Â
Exercise 10-5
Organization represent spending ($12,000 + 3,000)15,000
Patent ($20,000 + 2,000)22,000
Pre-opening disbursals 40,000
Furniture30,000
Cash107,000
Exercise 10-7
tally of goodwill:
Consideration exchanged$11,000,000
slight sane treasure of net assets:
Book value of net assets$7,800,000
Plus: reasonably value in excess of book value:
Property, plant, and equipment 1,400,000
impalpable assets1,000,000
Less: Book value in excess of fair value:
Receivables (200,000) 10,000,000
Goodwill$ 1,000,000
Problem 10-4
To class various expenditures wrongly charged to the impalpable asset account.
Organization cost expense7,000
Prepaid insurance6,000
Copyright20,000
enquiry and discipline expense40,000
Patent ($3,000 + 12,000)15,000
Franchise40,000
Advertising expense16,000
intangible asset asset144,000
To reclassify amount paid for Stiltz Corp. wrongly charged to the intangible asset account.
Receivables100,000
Equipment350,000
Patent150,000
Goodwill (determined below)120,000
Note payable220,000
Intangible asset500,000
Calculation of goodwill:
Consideration exchanged$500,000
Less: Fair value of net assets(380,000)
Goodwill$120,000
Problem 10-11
To trespass the cost of equipment to be used on future projects incorrectly charged to R&D expense.
Equipment400,000
Research and development expense400,000
To record depreciation on equipment used in R&D projects.
$400,000 ÷ 5 years = $80,000
Research and development expense80,000
Accumulated depreciation - equipment80,000
To capitalize register and legal fees for patent incorrectly charged to R&D expense.
Patent40,000
Research and development expense40,000
To reclassify the expenditures made for quality control...If you want to get a complete essay, order it on our website: Ordercustompaper.com
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