On September 1, 2020, Pipeline Corporation acquired Tunneling Limited for a cash payment of $954,000. At the

Question:

On September 1, 2020, Pipeline Corporation acquired Tunneling Limited for a cash payment of $954,000. At the time of purchase, Tunneling’s statement of financial position showed assets of $780,000, liabilities of $420,000, and owners’ equity of $360,000. The fair value of Tunneling’s assets is estimated to be $1,140,000. Calculate the amount of goodwill acquired by Pipeline.

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... 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...

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