1.On January 1,Year 2,Neal Co.issued 100,000 shares of its $10par value common stock in exchange for all...
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1.On January 1,Year 2,Neal Co.issued 100,000 shares of its $10par value common stock in exchange for all of Frey,Inc's outstanding stock. The fair value of Neal's common stock on that date was $45 per share. The carrying amounts and fair values of Frey's assets and liabilities on January 1, Year 2, were as follows
Carrying AmountFair Value
Cash$240,000$240,000
Receivables270,000270,000
Inventory435,000528,000
PPE1,305,0001,337,000
Liabilities-525,000-488,000
Net assets1,725,000
What is the amount ofgoodwill resulting from the business combination?
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