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WEEK 2 SOLUTIONS Exercises E 10-5 & amp; E 10-7, stick P 10-4 & P 10-11  Exercise 10-5 Organization fit 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: setting transfer$11,000,000 slight sane treasure of net assets: sacred scripture value of net assets$7,800,000 Plus: reasonably value in excess of book value: Property, plant, and equipment 1,400,000 impalpable assets1,000,000 Less: tidings value in excess of fair value: Receivables (200,000) 10,000,000 state of grace$ 1,000,000 occupation 10-4 To class various expenditures wrongly charged to the impalpable asset account. Organization cost expense7,000 Prepaid insurance6,000 Copyright20,000 enquiry and assort expense40,000 Patent ($3,000 + 12,000)15,000 Franchise40,000 Advertising expense16,000 intangible asset asset144,000 To reclassify summate paid for Sti ltz Corp. wrongly charged to the intangible asset account.

Receivables100,000 Equipment350,000 Patent150,000 good will (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(a) projects incorrectly charged to R&D expense. Equipment400,000 look for and development expense400,000 To record depreciation on equipment used in R&D projects. $400,000 ÷ 5 years = $80,000 explore 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 trust to get a complete essay, order it on our website: BestEssayCheap.com

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