On December 1, Year 3, Wall Co. Paid $860,000 in cash for all of the outstanding stock of Hart Corp. The book valueof Hart’s assets and liabilities were $800,000 and $180,000. The fair values were $840,000 and $140,000. During December, Wall Co spent an additional $80,000 to maintain "goodwill" in Hart’s business by starting a customer loyalty program.
What amount should Wall Co report as goodwill related to Hart in its 12/31/Year3 balance sheet?

The $60,000 paid as last month's rent will be reported as an asset, prepaid rent, and the deposit of $80,000 will be reported as an asset, deposits. The new walls and offices costing $360,000 will be capitalized as leasehold improvements and amortized over the 5-year term of the lease. Amortization will be $72,000 per year or $6,000 per month. As a result, Tell will report expenses in 20X0 of $60,000 in rent and $6,000 in amortization for a total of $66,000.

briancarroll1 briancarroll1 · Answer 2 · 2020-02-02T01:55:26+01:00

briancarroll1 briancarroll1

02-02-2020

Answer:

66,000

Explanation:

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