contractual arrangement under which one party grants another party the exclusive right to use a trademark or tradename is a:
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Northern purchased the entire business of Southern including all its assets and liabilities for $840,000 on December 31, 2024. Below is information related to the two companies at that date:
| Northern | Southern | |
| Fair value of assets | $ 1,470,000 | $ 1,120,000 |
| Fair value of liabilities | 735,000 | 420,000 |
| Reported assets | 1,120,000 | 910,000 |
| Reported liabilities | 700,000 | 350,000 |
| Net Income for the year | 84,000 | 70,000 |
How much goodwill did Northern pay for acquiring Southern?
Assets acquired under multi-year deferred payment contracts are:
A company incurred the follow costs related to research and development for the current year:
| Technology development (salaries and supplies) | $ 354,000 |
| Engineering work performed by another company | 184,000 |
| Purchase of equipment | 784,000 |
| Testing new models | 94,000 |
| Legal fees for patent application | 64,000 |
The equipment will be used in other projects. Depreciation in the current year is $124,000. For what amount should the company report research and development expense?
During the current year, Brewer Company acquired all of the outstanding common stock of Miller Incorporated paying $12,700,000 cash. The book values and fair values of Miller’s assets and liabilities acquired are listed below:
| Book Value | Fair Value | |
| Accounts receivable | $ 2,150,000 | $ 1,975,000 |
| Inventories | 3,400,000 | 4,700,000 |
| Property, plant, and equipment | 9,700,000 | 12,325,000 |
| Accounts payable | 3,700,000 | 3,700,000 |
| Bonds payable | 5,200,000 | 4,825,000 |
Required:
Prepare the journal entry to record the acquisition by Brewer Company.
Note: If no entry is required for a transaction/event, select “No journal entry required” in the first account field.