Question
On July 1, 2017, Brigham Corporation purchased Young Company by paying $273230 cash and issuing a $115240 note payable to Steve Young. At July 1,
On July 1, 2017, Brigham Corporation purchased Young Company by paying $273230 cash and issuing a $115240 note payable to Steve Young. At July 1, 2017, the balance sheet of Young Company was as follows.
| Cash | $ 48270 |
| Accounts receivable | 85287 |
| Inventory | 104749 |
| Land | 42637 |
| Buildings (net) | 78255 |
| Equipment (net) | 74788 |
| Trademarks | 10847 |
| Accounts payable | 205639 |
The recorded amounts all approximate current values except for land (fair value of $53913), inventory (fair value of $127909), and trademarks (fair value of $12544).
Calculate the amount of goodwill in this transaction. Show work
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Intermediate Accounting
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield
18th Edition
1119790972, 9781119790976
