Homework Answers
The Answer is b. Goodwill of $ 2,000
Explanation:
Goodwill = Fair Value of Net Assets - Consideration Paid = [$ 84000-$10000-$ 12000] - $ 60,000 = $ 2,000
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Maroons Limited acquired the net assets and contingent liabilities of Lewis Limited for $60 000. Lewis...
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LO4 32. Compute the amount of acquired Goodwill, including contingent earnings and bargain purchase Assume you...
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Where the acquirer purchases the assets and assumes the liabilities of another entity, it does not...
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QUESTION 5 Wilder Company purchased the net assets of Stocks Company for $225,000. On the date...
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Arizona Corp. acquired the business Data Systems for $320,000 cash and assumed all liabilities at the...
Arizona Corp. acquired the business Data Systems for $320,000
cash and assumed all liabilities at the date of purchase. Data’s
books showed tangible assets of $340,000, liabilities of $19,000,
and stockholders’ equity of $321,000. An appraiser assessed the
fair market value of the tangible assets at $310,000 at the date of
acquisition. Arizona Corp.’s financial condition just prior to the
acquisition is shown in the following statements model:
Assets
=
Liab.
+
Equity
Rev.
–
Exp.
=
Net Inc.
Cash...
Arizona Corp. acquired the business Data Systems for $325,000 cash and assumed all liabilities at the...
Arizona Corp. acquired the business Data Systems for $325,000 cash and assumed all liabilities at the date of purchase. Data’s books showed tangible assets of $350,000, liabilities of $20,000, and stockholders’ equity of $330,000. An appraiser assessed the fair market value of the tangible assets at $315,000 at the date of acquisition. Arizona Corp.’s financial condition just prior to the acquisition is shown in the following statements model: Assets = Liab. + Equity Rev. – Exp. = Net Inc. Cash...
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LO4 32. Compute the amount of acquired Goodwill, including contingent earnings and bargain purchase Assume you are charged with assigning fair values related to a 53.040,000 acquisition. You determine that the fair value of the net identifiable tangible assets is $1,480,000. You also conclude that the pur- chase included a Customer List with a fair value at $272,000. 4. How much Goodwill will you record in this acquisition, and how is the Goodwill accounted for subsequent to the acquisition? b....
Arizona Corp. acquired the business Data Systems for $345,000 cash and assumed all liabilities at the date of purchase. Data's books showed tangible assets of $390,000, liabilities of $24,000, and stockholders' equity of $366,000. An appraiser assessed the fair market value of the tangible assets at $335,000 at the date of acquisition. Arizona Corp.'s financial condition just prior to the acquisition is shown in the following statements model: Assets +Tang. Assets + NA Liab. Equity Rev. Exp. Net Inc. Cash...
QUESTION 5 Wilder Company purchased the net assets of Stocks Company for $225,000. On the date of Wilder's purchase, Stocks Company had $30,000 (book and fair value) of liabilities The fair values of Stocks Company's assets, when acquired, were Current assets $ 120,000 Noncurrent assets 180.000 Total $300,000 How should the 545,000 difference between the fair value of the net assets acquired (5270,000) and the consideration paid ($225,000) be accounted for by Wilder Company? A. The $45.000 difference should be...
Arizona Corp. acquired the business Data Systems for $320,000
cash and assumed all liabilities at the date of purchase. Data’s
books showed tangible assets of $340,000, liabilities of $19,000,
and stockholders’ equity of $321,000. An appraiser assessed the
fair market value of the tangible assets at $310,000 at the date of
acquisition. Arizona Corp.’s financial condition just prior to the
acquisition is shown in the following statements model:
Assets
=
Liab.
+
Equity
Rev.
–
Exp.
=
Net Inc.
Cash...
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