Question
Lake Incorporated purchased all of the outstanding stock of Huron Company paying $950,000 cash. Lake assumed all of the liabilities of Huron. Book values and
Lake Incorporated purchased all of the outstanding stock of Huron Company paying $950,000 cash. Lake assumed all of the liabilities of Huron. Book values and fair values of acquired assets and liabilities were:
| Book Value | Fair Value | ||||||
| Current assets (net) | $ | 130,000 | $ | 125,000 | |||
| Property, plant, equip. (net) | 600,000 | 750,000 | |||||
| Liabilities | 150,000 | 175,000 | |||||
Lake would record goodwill of:
Multiple Choice
$0.
$75,000.
$445,000.
$250,000.
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Fundamental Managerial Accounting Concepts
Authors: Edmonds, Tsay, olds
6th Edition
71220720, 78110890, 9780071220729, 978-0078110894
