Question
On April 31, 2019, Y acquired for $655000 cash in exchange of 70% of the outstanding common stocks of X when X's balance sheet showed
On April 31, 2019, Y acquired for $655000 cash in exchange of 70% of the outstanding common stocks of X when X's balance sheet showed net assets of $1000000 at the FMV. The business combination costs were $60000 indirect costs and $100000 direct costs.
What is the goodwill?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
To calculate the goodwill in a business combination we need to compare the fair value of the conside...
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Financial Reporting And Analysis
Authors: Lawrence Revsine, Daniel Collins, Bruce Johnson, Fred Mittelstaedt, Leonard Soffer
8th Edition
1260247848, 978-1260247848
