Respuesta :
Answer:
Amount paid for goodwill = $3950000
Explanation:
given data
outstanding common stock = $17,500,000
book values fair values
Current assets $6,500,000 $8,000,000
Property plant and equipment 11,500,000 14,500,000
Other assets 1,050,000 1,550,000
Current liabilities 4,500,000 4,500,000
Long-term liabilities 6,500,000 6,000,000
to find out
Calculate the amount paid for goodwill
solution
we get here first Net fair value of assets acquired that is here
Net fair value of assets = Current assets + Property plant and equipment +Other assets - Current liabilities - Long-term liabilities .................1
put here value we get
Net fair value of assets = 8,000,000 + 14,500,000 + 1,550,000 - 4,500,000 - 6,000,000
Net fair value of assets = 13550000
and
Amount paid for goodwill here
Amount paid for goodwill = outstanding common stock - Net fair value of assets .......................2
put here value
Amount paid for goodwill = $17,500,000 - 13550000
Amount paid for goodwill = $3950000
