The notes to a recent annual report from Weebok Corporation included the following:Business AcquisitionsDuring the current year, the company acquired the assets of Sport Shoes Inc.Assume that...

The notes to a recent annual report from Weebok Corporation included the following: Business Acquisitions During the current year, the company acquired the assets of Sport Shoes Inc. Assume that Weebok acquired Sport Shoes on January 2, 2014. Weebok acquired the name of the company and all of its assets, except cash, for $ 450,000 cash. Weebok did not assume the liabilities. On January 2, 2014, the statement of financial position of Sport Shoes reflected the following carrying amounts, and an independent appraiser estimated the following market values for the assets: Required: 1. Compute the amount of goodwill resulting from the purchase. 2. Compute the adjustments that Weebok would make at the end of its fiscal year, December 31, 2014, for depreciation of all long- lived assets ( straight- line), assuming an estimated remaining useful life of 15 years and no residual value. The company does not amortize goodwill. View Solution:

The notes to a recent annual report from Weebok Corporation