136 on march 31 2012 the new harvest bakery acquired all the outstanding common stoc 4296497
136.On March 31, 2012, the New Harvest Bakery acquired all the outstanding common stock of Red Rock Bakery for $68,000 in cash. The book values and market values of Red Rock's assets and liabilities were as follows:
Calculate the amount paid for goodwill.
137.Explain how the accounting treatment differs between purchased and internally developed intangible assets.
138.Western Wholesale Foods incurs the following expenditures during the current fiscal year: (1) Salaries for the repair technicians, $155,000; (2) remodeling of the executive offices, $84,000; (3) annual maintenance costs related to its machinery, $72,900; (4) improvement of the production line resulting in an increase in productivity, $38,000; and (5) addition of a sprinkler system to the manufacturing facility to reduce the risk of fire damage, $35,000. How should Western account for each of these expenditures?
139.Little King Sandwiches made the following expenditures related to its restaurant:
1. Replaced the heating and air conditioning system at a cost of $15,000.
2. Remodeled the restaurant building. The total cost of the project was $150,000.
3. Performed annual building maintenance at a cost of $47,000.
4. Paid annual insurance premium on the property for the coming year, $7,700.
5. Purchased a new delivery truck, $22,500.
6. Landscaped the property and added outdoor lights, $9,000.
Little King credits cash for each of these expenditures. Indicate the account to be debited for each expenditure.
3. Maintenance Expense
4. Prepaid Insurance
6. Land Improvements