As per required accounting standard ,asset need to be valued at fair value ,so goodwill be
calculated after considering the fair value of land.
So
Consideration $ 930,000
Assets at Fair value $ 840,000
Goodwill $90,000
Option C . $90,000
QUESTION 1 Morris Company acquires all of the voting stock of Company for 1930,000 cash. The...
Precision Company acquires all of Springfield Company's voting stock for $5,000,000 in cash. Information on Springfield's assets and liabilities at the date of acquisition is as follows: Book Value Dr (Cr) Fair Value Dr (Cr) Current assets $ 500,000 $ 700,000 Land, buildings and equipment (net) 2,000,000 3,500,000 Liabilities (600,000) (550,000) Capital stock (500,000) Retained earnings (1,400,000) In addition, Springfield Company has unrecorded identifiable intangible assets, in the form of brand names and lease agreements, with a total estimated fair...
Precision Company acquires all of Springfield Company's voting stock for $5,000,000 in cash. Information on Springfield's assets and liabilities at the date of acquisition is as follows: Book Value Dr (Cr) Fair Value Dr (Cr) Current assets $ 500,000 $ 700,000 Land, buildings and equipment (net) 2,000,000 3,500,000 Liabilities (600,000) (550,000) Capital stock (500,000) Retained earnings (1,400,000) In addition, Springfield Company has unrecorded identifiable intangible assets, in the form of brand names and lease agreements, with a total estimated fair...
Precision Company acquires all of Springfield Company's voting stock for $5,000,000 in cash. Information on Springfield's assets and liabilities at the date of acquisition is as follows: Book Value Dr (Cr) Fair Value Dr (Cr) Current assets $ 500,000 $ 700,000 Land, buildings and equipment (net) 2,000,000 3,500,000 Liabilities (600,000) (550,000) Capital stock (500,000) Retained earnings (1,400,000) In addition, Springfield Company has unrecorded identifiable intangible assets, in the form of brand names and lease agreements, with a total estimated fair...
Precision Company acquires all of Springfield Company's voting stock for $5,000,000 in cash. Information on Springfield's assets and liabilities at the date of acquisition is as follows: Book Value Dr (Cr) Fair Value Dr (Cr) Current assets $ 500,000 $ 700,000 Land, buildings and equipment (net) 2,000,000 3,500,000 Liabilities (600,000) (550,000) Capital stock (500,000) Retained earnings (1,400,000) In addition, Springfield Company has unrecorded identifiable intangible assets, in the form of brand names and lease agreements, with a total estimated fair...
Precision Company acquires all of Springfield Company's voting stock for $5,000,000 in cash. Information on Springfield's assets and liabilities at the date of acquisition is as follows: Book Value Dr (Cr) Fair Value Dr (Cr) Current assets $ 500,000 $ 700,000 Land, buildings and equipment (net) 2,000,000 3,500,000 Liabilities (600,000) (550,000) Capital stock (500,000) Retained earnings (1,400,000) In addition, Springfield Company has unrecorded identifiable intangible assets, in the form of brand names and lease agreements, with a total estimated fair...
Precision Company acquires all of Springfield Company's voting stock for $5,000,000 in cash. Information on Springfield's assets and liabilities at the date of acquisition is as follows: Book Value Dr (Cr) Fair Value Dr (Cr) Current assets $ 500,000 $ 700,000 Land, buildings and equipment (net) 2,000,000 3,500,000 Liabilities (600,000) (550,000) Capital stock (500,000) Retained earnings (1,400,000) In addition, Springfield Company has unrecorded identifiable intangible assets, in the form of brand names and lease agreements, with a total estimated fair...
Precision Company acquires all of Springfield Company's voting stock for $5,000,000 in cash. Information on Springfield's assets and liabilities at the date of acquisition is as follows: Book Value Dr (Cr) Fair Value Dr (Cr) Current assets $ 500,000 $ 700,000 Land, buildings and equipment (net) 2,000,000 3,500,000 Liabilities (600,000) (550,000) Capital stock (500,000) Retained earnings (1,400,000) In addition, Springfield Company has unrecorded identifiable intangible assets, in the form of brand names and lease agreements, with a total estimated fair...
Precision Company acquires all of Springfield Company's voting stock for $5,000,000 in cash. Information on Springfield's assets and liabilities at the date of acquisition is as follows: Book Value Dr (Cr) Fair Value Dr (Cr) Current assets $ 500,000 $ 700,000 Land, buildings and equipment (net) 2,000,000 3,500,000 Liabilities (600,000) (550,000) Capital stock (500,000) Retained earnings (1,400,000) In addition, Springfield Company has unrecorded identifiable intangible assets, in the form of brand names and lease agreements, with a total estimated fair...
QUESTION 20 Morris Inc, acquired 100% of the voting common stock of Mark Inc. on January 1, 2020. The book value and fair value of Mark's accounts on that date (prior to creating the combination are as follow along with the book value of Morris' accounts Value Mom Book $ 350.000 170.000 200,000 10000 Rendeme 1/1/20 Cash and receivables Inventory $ ar Book live 500.000 20.000 230.000 170.000 240.000 90.000 450.000 30 000 70.000 200.000 250,000 240.000 90.000 450.000 120.000...
Maxwell acquires 100 percent of the outstanding voting shares of Daisy Company on January 1, 2016. To obtain these shares, Maxwell pays $200,000 cash and issues 6,000 shares of $5 par value common stock on this date. Maxwell’s stock had a fair value of $20 per share. Maxwell also pays an additional $4,000 in stock issuance costs. At date of acquisition, the book values and fair values of Daisy's net assets amounted to $230,000 and $265,000, respectively. How much additional...