Firm A acquires firm B when firm B has a book value of assets of $155 million and a book value of liabilities of $35 million. Firm A actually pays $175 million for firm B. This purchase would result in goodwill for firm A equal to _____.

Respuesta :

Answer: $55,000,000

Explanation:

Firm B has a book value of assets of $155 million and a book value of liabilities of $35 million. Its actual value is $155,000,000 - $35,000,000 = $120,000,000

Firm A actually pays $175 million for firm B..

Good will is $175,000,000 - $120,000,000 = $55,000,000