Purple Corp. purchased all of the listed assets and liabilities of Sudden Corp. for $1,600,000. The following
Question:
Purple Corp. purchased all of the listed assets and liabilities of Sudden Corp. for $1,600,000. The following assets and liabilities were purchased:
Required:
1. What is the appropriate amount that would be recorded for goodwill?
2. Prepare the journal entry for the acquisition.
Transcribed Image Text:
Book Value Falr Market Value Accounts receivable $ 140,000 $ 140,000 Inventory 168,000 256,000 Property, plant, and equipment (net) 820,000 1,040,000 Patent 276,000 Liabilities (170,000) (170,000)
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Requirement 1 Goodwill purchased Actual purchase price 1600000 Less Estimated fair ...View the full answer
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Related Book For
Intermediate Accounting Volume 1
ISBN: 9781260306743
7th Edition
Authors: Thomas H. Beechy, Joan E. Conrod, Elizabeth Farrell, Ingrid McLeod Dick
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