Midland telecom provides communication services for iowa, Ask an Expert

Accounting

Midland Telecom provides communication services for Iowa, Nebraska, the Dakotas, and Montana. Midland purchased goodwill as part of the acquisition of Shipley Wireless Company, which had the following figures:

Book value of assets.................. $ 750,000

Market value of assets................ 1,000,000

Liabilities............................... 30,000

1. Journalize the entry to record Midland's purchase of Shipey Wireless for $320,000 cash plus a $480,000 note payable.

2. What special asset does Midland's acquisition of Shipey Wireless identify? How should Midland Telecom account for this asset after acquiring Shipey Wireless? Explain in detail.

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M9977412

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