Company A purchases Company B. This is a 100% equity purchase which means that Company A...

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Company A purchases Company B. This is a 100% equity purchase which means that Company A...

Company A purchases Company B. This is a 100% equity purchase which means that Company A acquires all of the Company B assets and assumes the liabilities of Company B.

Calculate the Price that Company A paid for Company B in the acquisition. Round to the nearest whole dollar and do not include the dollar sign ($).

Assume

the current market value of tangible physical assets is $1,492,000 (determined by Company A as at the acquisition date)
the current market value of the only identifiable intangible asset (a customer list) is $85,000 (determined by Company A as at the acquisition date)
Operating (non-Financial) liabilities have an appraised value of $160,000 before and after the acquisition.
Financial Liabilities were appraised by company B to be valued at $600,000 immediately Beforethe acquisition.
Financial Liabilities were appraised by Company A to be valued at $495,000 immediately Afterthe acquisition.
There are no other assets or liabilities to consider than those presented above
Company A recognized Goodwill equal to $246,800 for acquiring Company B.

business accounting

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Answer 1

Answer #1

Price that Company A paid for Company B $ Tangible physical assets Identifiable intangible asset - customer list Goodwill LES

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