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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Managerial Accounting
Authors: James Jiambalvo
4th edition
9780470546888, 9780470333341, 470546883, 470333340, 978-0470578797
