(Answered) Question - on july 1 2017 cheyenne corporation purchased

Accounting

Question - On July 1, 2017, Cheyenne Corporation purchased Young Company by paying $257,000 cash and issuing a $127,000 note payable to Steve Young. At July 1, 2017, the balance sheet of Young Company was as follows.

Cash	$51,400	Accounts payable	$204,000
Accounts receivable	91,100	Stockholders' equity	242,100
Inventory	105,000		$446,100
Land	41,600
Buildings (net)	74,900
Equipment (net)	70,700
Trademarks	11,400
	$446,100

The recorded amounts all approximate current values except for land (fair value of $60,400), inventory (fair value of $126,100), and trademarks (fair value of $16,160).

Prepare the July 1 entry for Cheyenne Corporation to record the purchase.

Prepare the December 31 entry for Cheyenne Corporation to record amortization of intangibles. The trademark has an estimated useful life of 4 years with a residual value of $3,360.

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