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Company A purchases Company B. This is a 100% equity purchase which means that Company A acquires all of the Company B assets and assumes

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Company A purchases Company B. This is a 100% equity purchase which means that Company A acquires all of the Company B assets and assumes the liabilities of Company B. Calculate the value of goodwill recognized in the acquisition. Round to the nearest whole dollar and do not include the dollar sign ($). Assume the current market value of tangible physical assets is $1,234,567 (determined by Company A as at the acquisition date) the current market value of the only identifiable intangible asset (a customer list) is $125,000 (determined by Company A as at the acquisition date) Operating (non-Financial) liabilities have an appraised value of $160,000 before and after the acquisition. Financial Liabilities were appraised by company B to be valued at $600,000 immediately Before the acquisition. Financial Liabilities were appraised by Company A to be valued at $495,000 immediately after the acquisition. There are no other assets or liabilities to consider than those presented above Company A paid $812,000 cash for Company B. The purpose of this calculation question is for you to compute the fair value of the financial liabilities of XYZ Company. XYZ Company has only 1 financial liability. It is a non-callable publicly traded bond. Here are your facts to input into this question: Maturity value of the bond = $280,000,000 Coupon Rate for the bond is 4.80% paid semi-annually. Bond matures on the last day of the firm's financial year. Last Financial Year end the yield to maturity was 4.38% based on doubling the periodic yield. Last Financial Year end - bond had exactly 18 years to maturity This Year Financial Year end - the yield to maturity demanded by the market is 5.68% (based on doubling the periodic rate) Required: Compute the fair value of the bond to be reported on this year's balance sheet. Round to the nearest dollar and do NOT include the dollar sign in your response

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