Question
On June 1, Cline Co. paid $870,000 cash for all of the issued and outstanding common stock of Renn Corp. The carrying amounts for Renn's
On June 1, Cline Co. paid $870,000 cash for all of the issued and outstanding common stock of Renn Corp. The carrying amounts for Renn's assets and liabilities on June 1 follow:
Cash $239,000
Accounts receivable181,000
Capitalized software costs340,000
Goodwill103,000
Liabilities(226,000)
Net assets$637,000
On June 1, Renn's accounts receivable had a fair value of $136,000. Additionally, Renn's in-process research and development was estimated to have a fair value of $253,000. All other items were stated at their fair values. On Cline's June 1 consolidated balance sheet, how much is reported for goodwill?
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Accounting Information Systems
Authors: Marshall RomneyPaul Steinbart
11th Edition
136015182, 978-0136015185
