On September 1, 2012, Winans Corporation acquired Aumont Enterprises for a cash payment of $700,000 At the time of purchase, Aumonts balance sheet showed assets of $620,000, liabilities of $200,000, and owners equity of $420,000 The fair value of Aumonts assets is estimated to be $800,000 Compute t...

Purchase price 700000 Fair value ...

On September 1, 2012, Winans Corporation acquired Aumont Enterprises for a cash payment of $700,000. At the

Question:

On September 1, 2012, Winans acquired Aumont Enterprises for a cash payment of $700,000. At the time of purchase, Aumont’s showed assets of $620,000, liabilities of $200,000, and owners’ equity of $420,000. The fair value of Aumont’s assets is estimated to be $800,000. Compute the amount of acquired by Winans.

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