Question
Do the following exercises: 1. calculate the Goodwill of Lion Corp. and Vazquez Corp., and assume that it pay $404,000 2. Calculate the advantageous purchase
Do the following exercises:
1. calculate the Goodwill of Lion Corp. and Vazquez Corp., and assume that it pay $404,000
2. Calculate the advantageous purchase of Lion Corp. and Vezquez Corp and assume that iI pay $264,000
Assets | Book Value | Fair Value |
Accounts receivable | $ 38,000 | $ 38,000 |
Inventory | 50,000 | 55,000 |
Land | 20,000 | 60,000 |
Buildings (net) | 50,000 | 90,000 |
Equipment (net) | 30,000 | 60,000 |
Patent | 25,000 | 40,000 |
Copyright | - | 50,000 |
Total Assets | $ 213,000 | $ 393,000 |
Liabilities & Equity | ||
Current liabilities | $ 10,000 | $ 10,000 |
Bonds payable | 30,000 | 32,000 |
Total liabilities | 40,000 | 42,000 |
Do the following:
1. make the analysis of price paid for both (Goodwill and advantageous purchase)
2. Make elimination entries.
3 do the table of the "allocation".
4 make the consolidated state.
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