Passcode Incorporated Acquired 90% of Safe Systems International for $540,000,the

question 32

Essay

Passcode Incorporated acquired 90% of Safe Systems International for $540,000,the market value at that time.On the date of acquisition,Safe Systems showed the following balances on their ledger:
Safe Systems has determined that their buildings have a remaining life of 10 years,and their equipment has a remaining useful life of 8 years.
Requirement 1: Calculate the amount of goodwill that will appear on the general ledger of Passcode and Safe Systems,as well as the amount that will appear on the consolidated financial statements.
Requirement 2: Calculate the amount of amortization that will appear on the consolidated financial statements for buildings and equipment,and explain how this amortization of excess fair value is shown on the separate general ledgers of Passcode and Safe Systems.

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Definitions:

Particularistic

Pertaining to the exclusive or unique characteristics of something, focusing on the specific rather than the general.

Nonlinear Domain

A field or situation where there are not simple, direct relationships between causes and effects, often involving complex interactions and outcomes.

Pandimensionality

A concept that alludes to the existence or consideration of multiple dimensions beyond the traditionally recognized three-dimensional spatial environment, often discussed in theoretical physics and metaphysical studies.

Fundamental Postulates

Basic principles or assumptions that are accepted as true without proof and serve as the foundation for further theory development or experimentation.