Answer:
Lowell Corporation
The amount that will be recorded as goodwill by Lowell Corporation to record its investment in Boston is:
= $5,000.
Explanation:
a) Data and Calculations:
Investment in Boston Company = $83,000
Fair value of assets = $98,000
Fair value of liabilities  23,000
Net value of assets = $75,000
Goodwill = $5,000 ($80,000 - $75,000)
b) Acquired Goodwill is the difference between the cost of purchasing Boston Company ($80,000) and the net identifiable assets of Boston Company ($75,000).  The net identifiable assets are calculated by subtracting the fair value of the liabilities from the fair value of the assets.
 
        
             
        
        
        
The correct answer is either B or A
        
                    
             
        
        
        
Answer:
Balance in Prepaid insurance as of December 31 is $18,750 
Explanation:
<em>       </em>Computation of Prepaid Insurance
Insurance 1    ($34,200 * 6/18)       $11,400
Insurance 2   ($14,700 * 12/24)      <u>$7,350 </u>
Total Prepaid Insurance               <u>$18,750</u>