On March 31, 2012, Mainline Produce Corporation acquired all the outstanding common stock of Iceberg Lettuce Corporation for $34,000,000 in cash The book values and fair values of Iceberg 's assets and liabilities were as follows Book Value Fair Value Current assets $12,000,000 $15,000,000 Property...

amounts in millions Purchase price 34 Le ...

On March 31, 2012, Mainline Produce Corporation acquired all the outstanding common stock of Iceberg Lettuce Corporation

Question:

On March 31, 2012, Mainline Produce acquired all the outstanding of Iceberg Lettuce for $34,000,000 in cash. The book values and fair values of Iceberg's assets and liabilities were as follows:
..............................................Book Value................ Fair Value
Current assets ............................$12,000,000.............. $15,000,000
Property, plant, and equipment .........22,000,000............... 28,000,000
Other assets .................................2,000,000................. 3,000,000
Current liabilities ...........................8,000,000 ................8,000,000
Long-term liabilities ......................12,000,000............... 11,000,000
Required:
Calculate the amount paid for goodwill.
Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on... 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...