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  3. rb holdings ltd. purchased the net assets of herbe

RB Holdings Ltd. purchased the net assets of Herbert BBQ Ltd. in early January 2020...

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Accounting

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RB Holdings Ltd. purchased the net assets of Herbert BBQ Ltd. in early January 2020 for $ 6,338,000. RB Holdings had appraisals conducted which indicated that the fair values of the assets purchased and liabilities assumed were as follows: Inventory $ 1.230,000 Buildings 757.000 Equipment 1.148.000 Patent 338,000 Accounts payable 373,000 Bank loan payable 672,000 The patent acquired has 15 years remaining in its useful life. RB's management determined that it would contribute to the generation of revenues for 8 years after which it would be obsolete. Determine the amount of goodwill RB Holdings acquired in the purchase. Goodwill $ Prepare the journal entry to record the amortization of the patent for the year ended December 31, 2020. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter O for the amounts.) Account Titles and Explanation Debit Credit

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