Question

Yummy Snacks, Inc., dominates the snack food industry with its Sally Chip brand. Assume that Yummy Snacks purchased Taco Chips Company for $5.2 million cash. The market value of Taco Chips' assets is $9 milion, and Taco Chips has labilities with a market value of $4.1 million Read the requirements Requirement 1. Compute the cost of the goodwill purchased by Yummy Snacks Entramounts in the nearest of a n as provided in the problem ment, xx) Cost of goodwill

Answer 1

5.2 Requirement 1) Purchased price paid for Taco Chips Company Market value of Taco Chips company assets Less: Taco chips company liabilities Market value of Taco Chips company net assets Cost of goodwill Note: $ in millions