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3. On January 2, 2011, P Inc. paid $700,000 for all of the outstanding common stock of s Company and dissolved Company. The carrying values
3. On January 2, 2011, P Inc. paid $700,000 for all of the outstanding common stock of s Company and dissolved Company. The carrying values for S Company's assets and liabilities are recorded below. Cash $200,000 Accounts Receivable 220,000 Copyrights (purchased) 400,000 Goodwill 120,000 Liabilities (180,000) Net assets $760,000 On January 2, 2011, 5 inc anticipated collecting $185,000 of the recorded Accounts Receivable P inc entered into the acquisition because Sinc had Copyrights that Pinc wished to own, and also unrecorded patents with a fair value of $100,000 Required: 1. Calculate the amount of goodwill that will be recorded on Pinc balance sheet as of the date of acquisition. Then record the journal entry Pilates would record on their books to record the acquisition (6 Points) The value must be a number
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