Now assume the acquisition cost to PR is ($60,000) (not the right answer). Other facts are the

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Now assume the acquisition cost to PR is \($60,000\) (not the right answer). Other facts are the same as originally reported. Goodwill reported on this acquisition is

a.    \($35,600\)  

b.  \($35,800\)

c.   \($44,400\)

d. \($49,400\) 

PR Company pays \($10,000\) in cash and issues no-par stock with a fair value of \($40,000\) to acquire all of SX Corporation’s net assets. SX’s balance sheet at the date of acquisition is as follows:

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PR’s consultants find these items that are not reported on SX’s balance sheet:

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Outside consultants are paid \($200\) in cash, and registration fees to issue PR’s new stock are \($400.\)

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Advanced Accounting

ISBN: 978-1618531513

3rd Edition

Authors: Susan S. Hamlen

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