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In: Accounting

9. Annapolis Company was recently sold for $450,000. Annapolis had assets & liabilities appraised at the...

9.

Annapolis Company was recently sold for $450,000. Annapolis had assets & liabilities appraised at the time of the sale in the amounts of:

Item

Amount

Accounts Receivable assumed by buyer

$93,000

Inventory

$250,000

Property, Plant & Equipment (net)

$530,000

Notes Payable assumed by buyer

$705,000

Using this information, how much should be recorded as Goodwill for this transaction?

10.

Bowie Company made a lump sum purchase of land, building, and equipment. The following were the appraised values of each element:

PP&E Element

Amount

Land

$15,000

Building

35,000

Equipment

45,000

Bowie paid $65,000 cash for the lump sum purchase. What value should be allocated to the building? (Enter only whole dollar values.)

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