On September 1, 2020, Grouper Corporation acquired Skysong Enterprises for a cash payment of $710,000. At...
On September 1, 2020, Grouper Corporation acquired Skysong
Enterprises for a cash payment of $710,000. At the time of
purchase, Skysong’s balance sheet showed assets of $620,000,
liabilities of $250,000, and owners’ equity of $370,000. The fair
value of Skysong’s assets is estimated to be $760,000.
Compute the amount of goodwill acquired by Grouper.
| Value assigned to goodwill |
$enter a dollar amount of goodwill acquired by Grouper |
Homework Answers
Calculate goodwill
| Fair value of assets | 760000 |
| Less: Liabilities | -250000 |
| Net Asset value | 510000 |
| Purchase cost | 710000 |
| Goodwill (710000-510000) | 200000 |
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