Nash Company acquired Seel Corporation through an exchange of common shares. All of Seel's assets and...
Nash Company acquired Seel Corporation through an exchange of
common shares. All of Seel's assets and
liabilities were immediately transferred to Nash. Nash's common
stock was trading at $25 per share at the time
of the exchange. The total par value of Nash's stock outstanding
before and after the acquisition was $750,000
and $840,000, respectively. Nash's additional paid-in capital
before and after the acquisition were $200,000 and
$560,000, respectively.
Based on the preceding information, what is the fair value of
Seel's net assets if goodwill of $20,000 is recorded in the
acquisition?
A$430,000
B$470,000
C$580,000
D$540,000
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