Question
Cozzi Company is being purchased and has the following balance sheet as of the purchase date: Current assets..........$200,000Liabilities....$ 90,000 Fixed assets............ 180,000 Equity......... 290,000 Total.................$380,000Total........$380,000
Cozzi Company is being purchased and has the following balance sheet as of the purchase date:
Current assets..........$200,000Liabilities....$ 90,000
Fixed assets............180,000Equity.........290,000
Total.................$380,000Total........$380,000
================
The price paid for Cozzi's net assets (the purchaser assumes the liabilities) is $500,000. The fixed assets have a fair value of $220,000, and the liabilities have a fair value of $110,000. The amount of goodwill to be recorded in the purchase is __________.
Please show work.
Thank you!
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