Beverage Inc. acquires Snack Ltd. for $30,000,000 in cash and accounts for its investment as a merger. Snack\u2019s balance sheet at the date of acquisition is as follows:<\/p>
Assets<\/strong><\/p><\/td> Amount<\/strong><\/p><\/td> Liabilities and Equity<\/strong><\/p><\/td> Amount<\/strong><\/p><\/td><\/tr><\/thead> Current assets<\/p><\/td> $1,200,000<\/p><\/td> Liabilities<\/p><\/td> $6,000,000<\/p><\/td><\/tr> Property, net<\/p><\/td> $8,000,000<\/p><\/td> Equity<\/p><\/td> $3,200,000<\/p><\/td><\/tr> Total assets<\/strong><\/p><\/td> $9,200,000<\/p><\/td> Total liabilities and equity<\/strong><\/p><\/td> $9,200,000<\/p><\/td><\/tr><\/tbody><\/table> The fair value of Snack\u2019s current assets is $100,000 less than book value. The fair value of its property is $1,500,000 less than book value. The book value of its liabilities approximates fair value. There are no unreported assets or liabilities.<\/p> Requirement<\/strong>: How much goodwill does Beverage report for this acquisition?<\/p>",
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"question_posted": "2024-05-27 03:38:35",
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