Parem, Inc., sells electronics and appliances. The excerpts that follow are adapted from Parem’s…

Parem, Inc., sells electronics and appliances. The excerpts that follow are adapted from Parem’s financial statements for 2010 and 2009. Requirements 1. How much was Parems cost of plant assets at February 28, 2010? How much was the book value of plant assets? Show computations. 2. The financial statements give three evidences that Parem purchased plant assets and goodwill during fiscal year 2010. What are they? 3. Prepare T-accounts for Property, Plant, and Equipment; Accumulated Depreciation; and Goodwill. Then show all the activity in these accounts during 2010. Label each increase or decrease and give its dollar amount. During 2010, Parem sold plant assets that had cost the company $78 million (accumulated depreciation on these assets was $62 million). Assume there were no losses on goodwill during2010.

 

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