Question
I have a question about number 11, Cozzi company. How is the answer $70,000? I keep getting $190,000, which isn't even a choice Cozzi Company
I have a question about number 11, Cozzi company. How is the answer $70,000? I keep getting $190,000, which isn't even a choice
Cozzi Company is being purchased and has the following balance sheet as of the purchase date:
Current Assets 200,000
Fixed assets 180,000
Total 380,000
Liabilities 90,000
Equity 290,000
Total 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 ________.
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Management Accounting
Authors: Late RC Sekhar, AV Rajagopalan
1st Edition
195683609, 978-0195683608
