contestada

Juliana Corporation purchased all of the outstanding stock of Caldwell Inc., paying $2,700,000 cash.

Juliana assumed all of the liabilities of Caldwell.

Book values and fair values of acquired assets and liabilities were:

Book Value Fair Value
Current assets (net) $420,000 $450,000
Property, plant, & equip. (net) 1,600,000 2,250,000
Liabilities 500,000 600,000

Juliana would record goodwill of:

a. $1,180,000.
b. $ 600,000.
c. $ 880,000.
d. $ 100,000

Respuesta :

Answer:

The coorects answer is b. $ 600, 000.

Explanation;

Goodwill made mean the premium price paid by acquirer over fair value of acquiree. For more detail please refer to calculations given below.

Consideration Given         2,700,000 $

Fair Value of net  (W-1)       (2,100,000) $

assets

Goodwill                               600,000 $

(W-1)

Fair value of asset- Fair value of liabilities

450,000+2,250,000-600,000 = 2,100,000

* Book value is irrelevant when calculating Goodwill.

Otras preguntas