Multiple Choice
Betta Group purchased Danio, Inc. for $960,000. The market value of Danio's assets and liabilities at the time of purchase were $1,300,000 and $360,000 respectively. The journal entry to record this will include:
A) debit to Asset accounts for $1,300,000, credit to Gain on Investments $340,000 and credit to Cash $960,000.
B) debit to Investments for $960,000, credit to Cash $960,000.
C) debit to Investments for $1,300,000, credit to Cash $960,000 and credit to Gain on Investment $340,000.
D) debit to Asset accounts for $1,300,000, debit to Goodwill $20,000, credit to Liabilities $360,000 and credit to Cash $960,000.
Correct Answer:
Verified
Correct Answer:
Verified
Q99: Spring Creek Mines purchased a vein of
Q100: Shakes, Inc. purchased 200 shares of Netflix
Q101: An example of an other asset would
Q102: Lionworks Corporation made a basket purchase of
Q103: Cesario Corporation purchases a machine for $125,000.
Q105: Lubricating a machine on a regular basis
Q106: Which accounting principle dictates whether the cost
Q107: Assets that CANNOT be seen, touched, or
Q108: The following is selected data for Inland
Q109: A truck costing $56,000 has accumulated depreciation