Question
On June 1, Cline Co. paid $1,015,000 cash for all of the issued and outstanding common stock of Renn Corp. The carrying amounts for Renns
On June 1, Cline Co. paid $1,015,000 cash for all of the issued and outstanding common stock of Renn Corp. The carrying amounts for Renns assets and liabilities on June 1 follow:
| Cash | $ | 199,000 | |
| Accounts receivable | 274,000 | ||
| Capitalized software costs | 334,000 | ||
| Goodwill | 158,000 | ||
| Liabilities | (154,000 | ) | |
| Net assets | $ | 811,000 | |
On June 1, Renns accounts receivable had a fair value of $215,000. Additionally, Renns in-process research and development was estimated to have a fair value of $228,000. All other items were stated at their fair values. On Clines June 1 consolidated balance sheet, how much is reported for goodwill?
Multiple Choice
A. $334,000.
B. $24,000.
C. $193,000.
D. $134,000.
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Documentation Improvement Methods The New Accounting Manual
Authors: Athar Murtuza
2nd Edition
0471379387, 978-0471379386
