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New Harvest Bakery acquired all the outstanding common stock of Red Rock Bakery for $68,400 in cash. The book values and fair values of Red
New Harvest Bakery acquired all the outstanding common stock of Red Rock Bakery for $68,400 in cash. The book values and fair values of Red Rock's assets and liabilities were as follows:
Book Value | Fair Value | |||||
Current assets | $ | 24,800 | $ | 27,300 | ||
Property, plant, and equipment | 44,400 | 55,900 | ||||
Other assets | 3,200 | 5,300 | ||||
Current liabilities | 18,300 | 15,700 | ||||
Long-term liabilities | 29,100 | 20,600 | ||||
Calculate the amount paid for goodwill.
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