Midland ‘Felecom provides communimtion services in Iowa, Nebraska, theDakoras, and Montana. Midland purchased goodwill as part of the acquisitionof Shipley Wireless Company, which had the following figures:Book value of assets S 750,000Market value of assets 1,000,000Market value of liabilities 530,000Requirements1. Journalize the entry to record Midland’s purchase of Shipley Wireless for$320,000 cash plus a $480,000 nore payable.2. What special asset does Midland’s acquisition ofShipley Wireless identify? Howshould Midland Telecorn account for this asset after acquiring Shipley Wireless?Explain in detail.Flo-3M. Recording lump sum asset purdnsea, depreciation, and disposalsGretta Chung Associates surveys American eating habits. The company’s accountsinclude Land. Buildings. Oflice Equipment. and Communication Equipment. witha separate Accumulated Depreciation account for each asset. During 2014. GrettaChung completed the following transactions:Jan. 1 Purchased office equipment. $119,000. Paid $80,000 cash and financed theremaining with a note payable,Apr, 1 Acquired land and communication equipment in a lump-sum purchase. Totalcost was $270,000 paid in cash. An independent appraisal valued the land at$212,625 and the communication equipment at $70,875.Sep. 1 Sold a building that cost $555,000 (accumulated depreciation of $255,000through December 31 of the preceding year). Chung received $370,000 camfrom the sale of the building. Depreciation rs computed on a straightiine basis.The building has a 40-year useful life and a residual value of $75,000Dec. 31 Recorded depreciation as follows:Communication equipment is depreciated by the straight-line method over afive-year life with zero residual value,Office equipment is depreciated using the double-declin-ng-balance method overfive years With a 32.000 residual value.Record the transactions in the journal of Gretta Chung Associates.PIG-33A Accounting for natural resourcesMcCabe Oil Company has an account titled Oil and Gas Properties. McCabepaid $6,200,000 for oil reserves holding an estimated 500,000 barrels of oil.Assume the company paid 3510.000 For additional geological tests of the prop-erty and $490,000 to prepare for drilling. During the first year, McCabe removedand sold 90,000 barrels of oiL Record all of McCabe’s transactions, includingdepletion for the first year.