On July 1, 2017, Brigham Corporation purchased Young Company by paying $250,000 cash and issuing...
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On July 1, 2017, Brigham Corporation purchased Young Company by paying $250,000 cash and issuing a $100,000 note payable to Steve Young. At July 1, 2017, the balance Question 4: 68 marks) sheet of Young Company was as follows $200,000 Accounts payable $ 50,000 90,000 100,000 40,000 75,000 70,000 10,000 $435,000 Stockholders' equity235,000 $435,000 Cash Accounts receivable Inventory Land Buildings (net) Equipment (net) Trademarks The recorded amounts all approximate current values except for land (fair value of S60,000), inventory (fair value of $125,000), and trademarks (fair value of $15,000. Instructions (a) Prepare the July 1 entry for Brigham Corporation to record the purchase. (b) Prepare the December 31 entry for Brigham Corporation to record amortization of intangibles. The trademark has an estimated useful life of 4 years with a residual value of $3,000. Show all calculations
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