# (Solved): Backstreets Company recently acquired all of Jungleland Incorporateds net assets in a business ac ...

Backstreets Company recently acquired all of Jungleland Incorporated’s net assets in a business acquisition. The cash purchase price was \$6.4 million. Jungleland’s assets and liabilities had the following appraised values immediately prior to the acquisition: land, \$1.3 million; buildings, \$3.0 million; inventory, \$1.8 million; long-term notes payable, for which Backstreets Company assumes payment responsibilities, \$1.1 million.

Required:

How much goodwill will result from this transaction?

Millco Incorporated acquired a machine that cost \$530,000 early in 2022. The machine is expected to last for ten years, and its estimated salvage value at the end of its life is \$73,000.

Required:

Using straight-line depreciation, calculate the depreciation expense to be recognized in the first year of the machine's life and calculate the accumulated depreciation after the fifth year of the machine's life.

Using declining-balance depreciation at twice the straight-line rate, calculate the depreciation expense for the third year of the machine's life.

What will be the net book value of the machine at the end of its ten year of use before it is disposed of, under each depreciation method?

Req A to B

Req C

a. Using straight-line depreciation, calculate the depreciation expense to be recognized in the first year of the machine's life and calculate the accumulated depreciation after the fifth year of the machine's life.

b. Using declining-balance depreciation at twice the straight-line rate, calculate the depreciation expense for the third year of the machine's life.

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 a. Depreciation expense \$45,700 selected answer correct a. Accumulated depreciation \$228,500 selected answer correct b. Depreciation expense ?

 Net book value Straight-line depreciation ? Declining-balance depreciation ?

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