Question
ake Incorporated purchased all of the outstanding stock of Huron Company paying $950,000 cash. Lake assumed all of the liabilities of Huron. Book values and
ake Incorporated purchased all of the outstanding stock of Huron Company paying $950,000 cash. Lake assumed all of the liabilities of Huron. Book values and fair values of acquired assets and liabilities were:
| Book Value | Fair Value | |
| Current assets (net) | $130,000 | $125,000 |
| Property, plant, equip. (net) | 600,000 | 750,000 |
| Liabilities | 150,000 | 175,000 |
Lake would record goodwill of:
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Financial and Managerial Accounting
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
3rd edition
978-1-119-3916, 1119392132, 1119392136, 9781119391609, 1119391601, 978-1119392132
