On July 1, 2017, Vinson Corporation acquired Carley Company for $900,000 cash At the time of purchase, Carley 's balance sheet showed assets of $775,000 and liabilities of $250,000 The fair value of Carley 's assets is estimated to be $950,000 Compute the amount of goodwill acquired by Vinson ...

On July 1, 2017, Vinson Corporation acquired Carley Company for $900,000 cash. At the time of purchase,

Question:

On July 1, 2017, Vinson acquired Carley Company for $900,000 cash. At the time of purchase, Carley's showed assets of $775,000 and liabilities of $250,000. The fair value of Carley's assets is estimated to be $950,000.
Compute the amount of acquired by Vinson.
Goodwill
Goodwill is an important concept and terminology in accounting which means good reputation. The word goodwill is used at various places in accounting but it is recognized only at the time of a business combination. There are generally two types of... Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial... Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...