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Jarrett is buying all the assets and assuming all the liabilities of Suzie Corporation. The following information is available for Suzie's at the date of
Jarrett is buying all the assets and assuming all the liabilities of Suzie Corporation. The following information is available for Suzie's at the date of the purchase: Accounts Receivable 250,000 Accounts payable 150,000 Inventory 100,000 Note Payable 100,000 Land 300,000 Common Stock 100,000 Retained Earnings 300,000 The accounts receivable are worth $200,000, the inventory is worth $80,000 and the land is worth $500,000. The Accounts Payable are worth book value. Additionally, the Note Payable debt is payable interest only at 10% per year for the next 5 years and then the principal is due. The current interest rate for similar debt is 12%. Jarrett will pay $650,000 for Suzie's. Approximately, how much of the purchase price will Jarrett debit to goodwill? O A. $ 124,804 OB. $ 112,790 OC. Some other number which is not here OD. $ 120,000 E. $ 117,790
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