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a. $0. b. $100. c. $125. d. $160. e. $45. The financial statements for Goodwin, Inc. and Corr Company for the year ended December 31,
a. $0.
b. $100.
c. $125.
d. $160.
e. $45.
The financial statements for Goodwin, Inc. and Corr Company for the year ended December 31, 2013, prior to Goodwin's acquisition business combination transaction regarding Corr, follow (In thousands): Revenues Expenses Net income Goodwin $2,700 1.980 $ 720 Corr $600 400 $200 $400 200 Retained earnings 1/1 Net income Dividends Retained earnings, 12/31 $2,400 720 (270) $2,850 (0) $600 Cash Receivables and inventory Buildings (net) Equipment (net) Total assets $ 240 1,200 2,700 2,100 $6,240 $ 220 340 600 1,200 $2,360 Liabilities $1,500 $ 820 Common stock 1,080 400 Additional paid-in capital 810 540 Retained earnings 2,850 600 Total liabilities & stockholders' equity $6,240 $2,360 On December 31, 2013, Goodwin issued $600 in debt and 30 shares of its $10 par value common stock to the owners of Corr to acquire all of the outstanding shares of that company, Goodwin shares had a fair value of $40 per share. Goodwin paid $25 to a broker for arranging the transaction. Goodwin pald $35 In stock Issuance costs. Corr's equipment was actually worth $1.400 but its buildings were only valued at $560. DO, Compute the goodwill arising from this acquisition at December 31, 2013Step by Step Solution
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