Frederick limited acquired the identifiable assets and liabilities of Flinstone Limited below:

The items acquired, stated at fair value, are: Plant $75 000 Inventory $40 000 Accounts receivable $21 000 Patents $10 000 Accounts payable $18 000. For consideration, Frederick Limited issued 100,000 shares values at $1.35 per share at the date of acquisition. The cost of issuing the shares was $2,000

Determine goodwill at acquistion

Workings:

Acquisition analysis:

Net fair value of identifiable assets and liabilities acquired:

Consideration transferred:

Goodwill