At the acquisition date cookeville ice cream has equipment


Question - Allen, Inc. buys all of the outstanding shares of Cookeville Ice Cream Company on April 1, 2012 for $860,000 cash. Cookeville Ice Cream's book value at the acquisition date was $600,000. At the acquisition date, Cookeville Ice Cream has equipment with a book value of $140,000 and a fair value of $110,000. The equipment has a remaining useful life of 3 years. The building has a remaining useful life of 10 years. Cookeville Ice Cream is carrying land on its books with fair value of $60,000. The original cost of the land was $26,000. Allen, Inc. incurred $5,000 legal costs related directly to the combination. How much goodwill will be reported in the consolidation financial statements on December 31, 2012, at the end of Allen's fiscal year? What is the excess amortization expense for the period ending December 31, 2012?

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Accounting Basics: At the acquisition date cookeville ice cream has equipment
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