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Chavra Hamilton company had the following balance sheet on January 1, 2019 Cash $45,000 current liabilities...

Chavra Hamilton company had the following balance sheet on January 1, 2019
Cash $45,000 current liabilities $40,000
Account Receivable $30,000 Noncurrent Liabilities $ 110,000
Inventory $20,00 Stockholders Equity $165,000
Property plant and equipment $220,000 Total Liabilities & S/H/E $315,000
Total Assets $ 315,000

On January 2, 2019, jose Amador company purchased Hamilton Company by acquiring all its outstanding shares for $280,00 cash. On that date the fair value of accounts Receivable was $15,000 the fair value of property, plant and equipment was $240,000. In addition, the value of unrecorded intangible asset was 15,000.
Required: A. compute the good will, associated with the purchase of Hamilton company
B. prepare a journal entry

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Answer #1
Cash $          45,000
Accounts receivables $          30,000
Property plant and equipment $        220,000
Inventory $          20,000
Total Assets $        315,000
Current liabilities $          40,000
Non current liabilities $        110,000
Stockholders Equity $        165,000
Total liabilities & Shareholders' equity $        315,000
Shares aquired for = $280,000
Fair value of accounts receivable = $15,000
Fair value of accounts Property plant and equipment = $240,000
Value of unrecorded intangible assets = $15,000
Calculation of Goodwill
Value of business = Book value of Cash & Inventory
+ fair value of accounts recevables+ fair value of property plant and equipment
+ Value of unrecorded intangible assets
- Book value of Current liabilities and Non current liabilities
= 65000+255000+15000-150000
= $ 185,000
Goodwill= Share acquisition price - Value of business
280000-185000
$    95,000
Journal Entry

2/01/2019

 Business Purchase A/c Dr. $        280,000
         To Liquidator A/c $280,000
2/01/2019 Cash A/c Dr. $          45,000
Inventory A/c Dr. $          20,000
Accounts receivables A/c Dr. $          15,000
Property plant And Equipment A/c Dr. $        240,000
Intangible Assets A/c Dr. $          15,000
Goodwill A/c Dr. $          95,000
         To Current Liabilities A/c $40,000
         To Non Current Liabilities A/c $110,000
         To Business Purchase A/c $280,000
2/01/2019 Liquidator A/c Dr. $        280,000
         To Cash A/c $280,000
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