Question
On June 1, Cline Co. paid $800,000 cash for all of the issued and outstanding common stock of Renn Corp. The carrying amounts for Renns
On June 1, Cline Co. paid $800,000 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 | $ | 150,000 | |
| Accounts receivable | 180,000 | ||
| Capitalized software costs | 320,000 | ||
| Goodwill | 100,000 | ||
| Liabilities | (130,000 | ) | |
| Net assets | $ | 620,000 | |
On June 1, Renns accounts receivable had a fair value of $140,000. Additionally, Renns in-process research and development was estimated to have a fair value of $200,000. All other items were stated at their fair values. On Clines June 1 consolidated balance sheet, how much is reported for goodwill?
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Accountancy And The Changing Landscape Of Integrated Reporting
Authors: Ioana Dragu
1st Edition
1522536221, 9781522536222
