Question
Harper Corp. has only three assets constituting its business: Carrying amountFair valueInventory$165,000$225,000Land1,050,000900,000Buildings1,050,0001,350,000 Kandon Inc. purchases Harper's assets by issuing 100,000 common shares with a market
Harper Corp. has only three assets constituting its business:
Carrying amountFair valueInventory$165,000$225,000Land1,050,000900,000Buildings1,050,0001,350,000
Kandon Inc. purchases Harper's assets by issuing 100,000 common shares with a market value of $30 per share.
What is the amount of goodwill from this business combination?
Multiple Choice
- Negative $525,000
- Nil
- $525,000
- $735,000
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College Accounting Chapters 1-27
Authors: James A. Heintz, Robert W. Parry
23rd edition
1337794759, 978-1337794756
