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Beams10e Ch03
Beams10e Ch03
to accompany
Advanced Accounting, 10th edition
by Floyd A. Beams, Robin P. Clement,
Joseph H. Anthony, and Suzanne Lowensohn
Cost – FV = $0 goodwill
Sandy BV FV
Cash $40 $40
Receivables 30 30
Inventory 50 75
Plant, net 200 240
Total $320 $385
Liabilities $75 $75
Cost $310
Capital stock 100
100% BV 245
Retained
earnings 145
Excess of cost over BV $65
Total $320
© Pearson Education, Inc. publishing as Prentice Hall 3-14
Piper and Sandy (cont.)
Allocate to: Amt Amort.
Inventory 100%(+25) 25 1st yr
Plant 100%(+40) 40 10 yrs
Total $65