Question
Northern purchased the entire business of Southern including all its assets and liabilities for $1,440,000 on December 31, 2021. Below is information related to the
Northern purchased the entire business of Southern including all its assets and liabilities for $1,440,000 on December 31, 2021. Below is information related to the two companies at that date:
| Northern | Southern | |||||||
| Fair value of assets | $ | 2,520,000 | $ | 1,920,000 | ||||
| Fair value of liabilities | 1,260,000 | 720,000 | ||||||
| Reported assets | 1,920,000 | 1,560,000 | ||||||
| Reported liabilities | 1,200,000 | 600,000 | ||||||
| Net Income for the year | 144,000 | 120,000 | ||||||
How much goodwill did Northern pay for acquiring Southern?
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Auditing Principles And Techniques
Authors: Sanjib Kumar Basu, Andrei Alexandrescu
1st Edition
8177581783, 9788177581782
