Question
1.MAJ Corporation acquired 100% of the common stock of Min Co.for $1,740,000.MAJ previously held no equity interest in Min. On the date of acquisition,the carrying
1.MAJ Corporation acquired 100% of the common stock of Min Co.for $1,740,000.MAJ previously held no equity interest in Min.
On the date of acquisition,the carrying amount of Min's identifiable net assets equaled $1,487,000.
The acquisition-date fair values of Min's inventory and equipment exceeded their carrying amounts by $69,000 and$53,000,respectively.Thecarrying amounts of the other assets and liabilities were equal to their acquisition-date fair values.
What amount should MAJ recognize on the consolidated financial statementsas goodwill as of the date of the acquisition?
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Core Concepts Of Accounting Information Systems
Authors: Mark G. Simkin, Carolyn A. Strand Norman, Scott Paquette
1st Canadian Edition
1118738101, 978-1118738108
