On July 1, 2020, Flounder Corporation purchased Young Company by paying $261,000 cash and issuing a $143,000 note payable to Steve Young. At July 1, 2020, the balance sheet of

On July 1, 2020, Flounder Corporation purchased Young Company by paying $261,000 cash and issuing a $143,000 note payable to Steve Young. At July 1, 2020, the balance sheet of Young Company was as follows. Cash $50,000 Accounts payable $208,000 Accounts receivable 91,000 Stockholders’ equity 238,700 Inventory 108,000 $446,700 Land 41,100 Buildings (net) 74,800 Equipment (net) 70,500 Trademarks 11,300 $446,700 The recorded amounts all approximate current values except for land (fair value of $62,600), inventory (fair value of $125,800), and trademarks (fair value of $17,600). 1). Prepare the July 1 entry for Flounder Corporation to record the purchase. 2). Prepare the December 31 entry for Flounder Corporation to record amortization of intangibles. The trademark has an estimated useful life of 4 years with a residual value of $4,640. (