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i need help solving this problem please On July 31, 2017, Sunland Company paid $2, 850, 000 to acquire all of the common stock of
i need help solving this problem please
On July 31, 2017, Sunland Company paid $2, 850, 000 to acquire all of the common stock of Conchita Incorporated, which became a division of Sunland. Conchita reported the following balance sheet at the time of the acquisition. It was determined at the date of the purchase that the fair value of the identifiable net assets of Conchita was $2, 500, 000. Over the next 6 months of operations, the newly purchased division experienced operating losses. In addition, it now appears that it will generate substantial losses for the foreseeable future. At December 31, 2017, Conchita reports the following balance sheet information. It is determined that the fair value of the Conchita Division is $1, 850, 000. The recorded amount for Conchita's net assets (excluding goodwill) is the same as fair value, except for property, plant, and equipment, which has a fair value $100, 000 above the carrying value. (a) Compute the amount of goodwill recognized, if any, on July 31, 2017. The amount of goodwill $Step by Step Solution
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