Question
On June 1, Cline Co. paid $969,000 cash for all of the issued and outstanding common stock of Renn Corp. The carrying amounts for Renns
On June 1, Cline Co. paid $969,000 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 | $ | 247,000 | |
| Accounts receivable | 254,000 | ||
| Capitalized software costs | 330,000 | ||
| Goodwill | 116,000 | ||
| Liabilities | (215,000 | ) | |
| Net assets | $ | 732,000 | |
On June 1, Renns accounts receivable had a fair value of $190,000. Additionally, Renns in-process research and development was estimated to have a fair value of $258,000. 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. $330,000.
b. $21,000.
c. $95,000.
d. $159,000.
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Software Quality Assurance Internal Audit And IT Audit Integrated Testing Security And Audit
Authors: Abu Sayed Mahfuz
1st Edition
0367567970, 978-0367567972
