Homework Answers
| Ans. 1 | The fair market value of net assets is $4,680,000 and the purchase consideration is | ||
| $5,530,000. The excess amount of purchase consideration will be known as | |||
| Goodwill. | |||
| Goodwill = $5,530,000 - $4,680,000 | |||
| $850,000 or $0.85 million | |||
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Northern Equipment Corporation purchased all the outstanding common stock of Pioneer Equipment Rental for $5,530,000 in...
Northern Equipment Corporation purchased all the outstanding common stock of Pioneer Equipment Re...
Northern Equipment Corporation purchased all the outstanding common stock of Pioneer Equipment Rental for $5,560,000 in cash. The book values and fair values of Pioneer's assets and liabilities were: Fair Value $710,000 $ 610,000 4,060,000 4,760,000 190,000 (790,000)(790,000) Book Value Accounts Receivable Buildings Equipment Accounts Payable 100,000 Net assets $4,080,000 4,770,000 Required: 1. Calculate the amount Northern Equipment should report for goodwill Goodwill $1,000 View transaction list Journal entry worksheet Record the acquisition of Pioneer Equipment Rental. Note: Enter debits...
Problem 7-3B Calculate and record goodwill (LO7-2) Northern Equipment Corporation purchased all the outstanding common stock...
Problem 7-3B Calculate and record goodwill (LO7-2)
Northern Equipment
Corporation purchased all the outstanding common stock of Pioneer
Equipment Rental for $5,430,000 in cash. The book values and fair
values of Pioneer’s assets and liabilities were:
Problem 7-3B Calculate and record goodwill (LO7-2) Northern Equipment Corporation purchased all the outstanding common stock of Pioneer Equipment Rental for $5,430,000 in cash. The book values and fair values of Pioneer's assets and liabilities were: Accounts Receivable Buildings Equipment Accounts Payable Net assets...
Problem 7-3B Calculate and record goodwill (L07-2) Northern Equipment Corporation purchased all the outstanding common...
Problem 7-3B Calculate and record goodwill (L07-2) Northern Equipment Corporation purchased all the outstanding common stock of Pioneer Equipment Rental for $5,490,000 in cash. The book values and fair values of Pioneer's assets and liabilities were: Accounts Receivable Buildings Equipment Accounts Payable Net assets Book Value $ 640,000 3,990,000 120, eee (860, 980) $ 3,890,000 Fair value $ 540, eee 4,690,000 210, eee (860,000) $4,588,888 Required: 1. Calculate the amount Northern Equipment should report for goodwill. Goodwill 2. Record Northern...
Check my work Problem 7-3B Calculate and record goodwill (LO7-2) 1.66 points Northern Equipment Corporation purchased...
Check my work Problem 7-3B Calculate and record goodwill (LO7-2) 1.66 points Northern Equipment Corporation purchased all the outstanding common stock of Pioneer Equipment Rental for $5,430,000 in cash. The book values and fair values of Pioneer's assets and liabilities were: Book Value $ 580,000 3,930,000 120,000 (920,000) $3,710,000 Accounts Receivable Buildings Equipment Accounts Payable Net assets Fair Value $ 480,000 4,630,000 210,000 (920,000) $4,400,000 eBook Print Required: 1. Calculate the amount Northern Equipment should report for goodwill. References Goodwill...
i just need the answer to second part. I don't know what else I have to add to journal entry. Problem 7-3B Calculate...
i just need the answer to second part. I don't know what else
I have to add to journal entry.
Problem 7-3B Calculate and record goodwill (LO7-2) Northern Equipment Corporation purchased all the outstanding common stock of Pioneer Equipment Rental for $5,550,000 in cash. The book values and fair values of Pioneer's assets and liabilities were: Book Value $ 700,000 4,050,000 120,000 (800,000) $4,070,000 Fair Value $ 600,000 4,750,000 210,000 (800,000) $4,760,000 Accounts Receivable Buildings Equipment Accounts Payable Net assets...
Johnson Corporation acquired all of the outstanding common stock of Smith Corporation for $12,560,000 in cash....
Johnson Corporation acquired all of the outstanding common stock of Smith Corporation for $12,560,000 in cash. The book value of Smith’s net assets (assets minus liabilities) was $9,100,000. The fair values of all of Smith’s assets and liabilities were equal to their book values with the following exceptions: Book Value Fair Value Receivables $ 2,600,000 $ 2,270,000 Property, plant, and equipment 9,300,000 10,830,000 Intangible assets 330,000 1,460,000 1. Required: Calculate the amount paid for goodwill.____________________?
On March 31, 2021, Wolfson Corporation acquired all of the outstanding common stock of Barney Corporation...
On March 31, 2021, Wolfson Corporation acquired all of the outstanding common stock of Barney Corporation for $18,000,000 in cash. The book values and fair values of Barney's assets and liabilities were as follows: Current assets Property, plant, and equipment Other assets Current liabilities Long-term liabilities Book Value $ 7,000,000 12,000,000 1,100,000 5,000,000 7,000,000 Fair Value $ 8,500,000 15,000,000 1,600,000 5,000,000 6,500,000 Required: Calculate the amount paid for goodwill. Goodwill
please show work son Corporation acquired all of the outstanding common stock of Smith Corporation or...
please show work
son Corporation acquired all of the outstanding common stock of Smith Corporation or 12,920,000 in cash. The book value of Smith's net assets (assets minus liabilities) was $9,400,000. The fair values of all of Smith's assets and liabilities were equal to their book values with the following exceptions: Book Value Fair Value $2,900,000 S 2,540,000 Property, plant, and equipment 9,600,000 11,160,000 360,000 1,520,000 Receivables Intangible assets Required: 1. Calculate the amount paid for goodwill. 2. Prepare the...
On March 31, 2018, Wolfson Corporation acquired all of the outstanding common stock of Barney Corporation...
On March 31, 2018, Wolfson Corporation acquired all of the outstanding common stock of Barney Corporation for $17,400,000 in cash. The book values and fair values of Barney’s assets and liabilities were as follows: Book Value Fair Value Current assets $ 6,400,000 $ 7,900,000 Property, plant, and equipment 11,400,000 14,400,000 Other assets 1,040,000 1,540,000 Current liabilities 4,400,000 4,400,000 Long-term liabilities 6,400,000 5,900,000 Required: Calculate the amount paid for goodwill.
On March 31, 2016, Wolfson Corporation acquired all of the outstanding common stock of Barney Corporation...
On March 31, 2016, Wolfson Corporation acquired all of the outstanding common stock of Barney Corporation for $17,000,000 in cash. The book values and fair values of Barney’s assets and liabilities were as follows: Book Value Fair Value Current assets $ 6,000,000 $ 7,500,000 Property, plant, and equipment 11,000,000 14,000,000 Other assets 1,000,000 1,500,000 Current liabilities 4,000,000 4,000,000 Long-term liabilities 6,000,000 5,500,000 Required: Calculate the amount paid for goodwill.
Northern Equipment Corporation purchased all the outstanding common stock of Pioneer Equipment Rental for $5,560,000 in cash. The book values and fair values of Pioneer's assets and liabilities were: Fair Value $710,000 $ 610,000 4,060,000 4,760,000 190,000 (790,000)(790,000) Book Value Accounts Receivable Buildings Equipment Accounts Payable 100,000 Net assets $4,080,000 4,770,000 Required: 1. Calculate the amount Northern Equipment should report for goodwill Goodwill $1,000 View transaction list Journal entry worksheet Record the acquisition of Pioneer Equipment Rental. Note: Enter debits...
Problem 7-3B Calculate and record goodwill (LO7-2)
Northern Equipment
Corporation purchased all the outstanding common stock of Pioneer
Equipment Rental for $5,430,000 in cash. The book values and fair
values of Pioneer’s assets and liabilities were:
Problem 7-3B Calculate and record goodwill (LO7-2) Northern Equipment Corporation purchased all the outstanding common stock of Pioneer Equipment Rental for $5,430,000 in cash. The book values and fair values of Pioneer's assets and liabilities were: Accounts Receivable Buildings Equipment Accounts Payable Net assets...
Problem 7-3B Calculate and record goodwill (L07-2) Northern Equipment Corporation purchased all the outstanding common stock of Pioneer Equipment Rental for $5,490,000 in cash. The book values and fair values of Pioneer's assets and liabilities were: Accounts Receivable Buildings Equipment Accounts Payable Net assets Book Value $ 640,000 3,990,000 120, eee (860, 980) $ 3,890,000 Fair value $ 540, eee 4,690,000 210, eee (860,000) $4,588,888 Required: 1. Calculate the amount Northern Equipment should report for goodwill. Goodwill 2. Record Northern...
Check my work Problem 7-3B Calculate and record goodwill (LO7-2) 1.66 points Northern Equipment Corporation purchased all the outstanding common stock of Pioneer Equipment Rental for $5,430,000 in cash. The book values and fair values of Pioneer's assets and liabilities were: Book Value $ 580,000 3,930,000 120,000 (920,000) $3,710,000 Accounts Receivable Buildings Equipment Accounts Payable Net assets Fair Value $ 480,000 4,630,000 210,000 (920,000) $4,400,000 eBook Print Required: 1. Calculate the amount Northern Equipment should report for goodwill. References Goodwill...
i just need the answer to second part. I don't know what else
I have to add to journal entry.
Problem 7-3B Calculate and record goodwill (LO7-2) Northern Equipment Corporation purchased all the outstanding common stock of Pioneer Equipment Rental for $5,550,000 in cash. The book values and fair values of Pioneer's assets and liabilities were: Book Value $ 700,000 4,050,000 120,000 (800,000) $4,070,000 Fair Value $ 600,000 4,750,000 210,000 (800,000) $4,760,000 Accounts Receivable Buildings Equipment Accounts Payable Net assets...
On March 31, 2021, Wolfson Corporation acquired all of the outstanding common stock of Barney Corporation for $18,000,000 in cash. The book values and fair values of Barney's assets and liabilities were as follows: Current assets Property, plant, and equipment Other assets Current liabilities Long-term liabilities Book Value $ 7,000,000 12,000,000 1,100,000 5,000,000 7,000,000 Fair Value $ 8,500,000 15,000,000 1,600,000 5,000,000 6,500,000 Required: Calculate the amount paid for goodwill. Goodwill
please show work
son Corporation acquired all of the outstanding common stock of Smith Corporation or 12,920,000 in cash. The book value of Smith's net assets (assets minus liabilities) was $9,400,000. The fair values of all of Smith's assets and liabilities were equal to their book values with the following exceptions: Book Value Fair Value $2,900,000 S 2,540,000 Property, plant, and equipment 9,600,000 11,160,000 360,000 1,520,000 Receivables Intangible assets Required: 1. Calculate the amount paid for goodwill. 2. Prepare the...
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