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Jam Co. acquired another company for $2M. The following were acquired; Book value Fair value Short term investment $300K $300K Inventory $90K $75K Land $500K
Jam Co. acquired another company for $2M. The following were acquired;
| Book value | Fair value | |
| Short term investment | $300K | $300K |
| Inventory | $90K | $75K |
| Land | $500K | $100K |
| Customer list | $400K | $600K |
| Payable | $50K | $50K |
How should they record the transaction?
Multiple Choice
Cr. Goodwill $960K
dr. goodwill $960K
dr. invention $90K
dr. cash $2M
Dr. payables $50K
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Data Analytics Using Excel Microsoft 365 With Accounting And Finance Datasets Version 3.0
Authors: Joseph Manzo
1st Edition
145333758X, 9781453337585
