Rabito Corp., aggressively acquires other companies. Assume that Rabito Corp., purchased Loring, Inc., for $1,500,000 cash. The
Question:
Rabito Corp., aggressively acquires other companies. Assume that Rabito Corp., purchased Loring, Inc., for $1,500,000 cash. The market value of Loring's assets is $2,200,000, and it has liabilities with a market value of $825,000.
Requirements
1. Compute the cost of goodwill purchased by Rabito Corp.
2. Record the purchase of Loring, Inc., by Rabito Corp?
GoodwillGoodwill 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...
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1 Goodwill Purchase price paid for Loring Inc 1500000 Market value of Lori...View the full answer
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