Question
Offered Price $13.00

Montana Matt’s Golf Inc.

Question # 00002044
Subject: General Questions
Due on: 10/08/2013
Posted On: 10/06/2013 05:23 PM

Rating:
4.1/5
Expert tutors with experiences and qualities
Posted By
Best Tutors for school students, college students
Questions:
4668
Tutorials:
6270
Feedback Score:

Purchase it
Report this Question as Inappropriate
Question

Montana Matt’s Golf Inc. was formed on July 1, 2011, when Matt Magilke purchased the Old Master Golf Company. Old Master provides video golf instruction at kiosks in shopping malls. Magilke plans to integrate the instructional business into his golf equipment and accessory stores. Magilke paid $767,500 cash for Old Master. At the time, Old Master’s balance sheet reported assets of $658,800 and liabilities of $211,200 (thus owners’ equity was $447,600). The fair value of Old Master’s assets is estimated to be $802,600. Included in the assets is the Old Master trade name with a fair value of $10,710 and a copyright on some instructional books with a fair value of $35,200. The trade name has a remaining life of 5 years and can be renewed at nominal cost indefinitely. The copyright has a remaining life of 40 years.

(a)Prepare the intangible assets section of Montana Matt’s Golf Inc. at December 31, 2011. How much amortization expense is included in Montana Matt’s income for the year ended December 31, 2011?

(b)Prepare the journal entry to record amortization expense for 2012. Prepare the intangible assets section of Montana Matt’s Golf Inc. at December 31, 2012. (No impairments are required to be recorded in 2012.)(Credit account titles are automatically indented when amount is entered. Do not indent manually.)

(c)At the end of 2013, Magilke is evaluating the results of the instructional business. Due to fierce competition from online and television (e.g., the Golf Channel), the Old Master reporting unit has been losing money. Its book value is now $509,300. The fair value of the Old Master reporting unit is $422,000. The implied value of goodwill is $88,800. Magilke has collected the following information related to the company’s intangible assets.

Intangible Asset

Expected Cash Flows

(undiscounted)

Fair Values

Trade names

$9,420

$3,400

Copyrights

42,190

23,810



Prepare the journal entries required, if any, to record impairments on Montana Matt’s intangible assets. (Assume that any amortization for 2013 has been recorded.)(Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Tags golf matts montana golf aets master value intangible montana fair magilke matts december trade amortization 0 instructional expense copyright included journal remaining life years impairments indent entered manually 1 unit reporting indented automatically

Tutorials for this Question
Available for
$13.00

Montana Matt’s Golf Inc.

Tutorial # 00001870
Posted On: 10/06/2013 05:24 PM
Posted By:
Best Tutors for school students, college students mac123
Expert tutors with experiences and qualities
Questions:
4668
Tutorials:
6270
Feedback Score:
Report this Tutorial as Inappropriate
Tutorial Preview …  Montana xxxxxxxx…
Attachments
montana_matt.docx (18.17 KB)
Preview: assets xx $658,800 and xxxxxxxxxxx of $211,200 (thus xxxxxxxxx equity was xxxxxxxxx The xxxx xxxxx of xxx Master’s assets xx estimated to xx $802,600 xxxxxxxx xx the xxxxxx is the xxx Master trade xxxx with x xxxx value xx $10,710 and a xxxxxxxxx on some xxxxxxxxxxxxx books xxxx x fair xxxxx of $35,200 xxx trade name xxx a xxxxxxxxx xxxx of 5 years xxx can be xxxxxxx at nominal xxxx indefinitely xxx xxxxxxxxx has x remaining life xxxxxxxxxxxxx (a) Prepare the xxxxxxxxxx assets xxxxxxx xx Montana xxxxxxxx Golf Inc xx December 31, xxxx How xxxx xxxxxxxxxxxx expense xx included in xxxxxxx Matt’s income xxx the xxxx xxxxx December xxx 2011?(a)MONTANA MATT’S xxxx INC Intangibles xxxxxxx of xxxxxxx xxxxxxxxxxxxx 31, xxxxxxxxx.....
montana_matt.docx (18.17 KB)
Preview: golf xxxxxxxxxxx at xxxxxx in shopping xxxxx Magilke plans xx integrate xxx xxxxxxxxxxxxx business xxxx his golf xxxxxxxxx and accessory xxxxxx Magilke xxxx xxxxxxxxxxxxxx for xxx Master At xxx time, Old xxxxxxxxxx balance xxxxx xxxxxxxx assets xx $658,800 and liabilities xx $211,200 (thus owners’ xxxxxx was xxxxxxxxx xxx fair xxxxx of Old xxxxxxxxxx assets is xxxxxxxxx to xx xxxxxxxx Included xx the assets xx the Old xxxxxx trade xxxx xxxx a xxxx value of xxxxxxxxxxxx a copyright xx some xxxxxxxxxxxxx xxxxx with x fair value xx $35,200 The xxxxx name xxx x remaining xxxx of 5 years and xxx be renewed xx nominal xxxx xxxxxxxxxxxx The xxxxxxxxx has a xxxxxxxxx life of 40 years xxxxxxxxxxxx the xxxxxxxxxx xxxxxx section.....
Purchase this Tutorial @ $13.00 *
* - Additional Paypal / Transaction Handling Fee (3.9% of Tutorial price + $0.30) applicable
Loading...