Question
On March 31, 2021, Wolfson Corporation acquired all of the outstanding common stock of Barney Corporation for $17,700,000 in cash. The book values and fair
On March 31, 2021, Wolfson Corporation acquired all of the outstanding common stock of Barney Corporation for $17,700,000 in cash. The book values and fair values of Barneys assets and liabilities were as follows:
| Book Value | Fair Value | |||||
| Current assets | $ | 6,700,000 | $ | 8,200,000 | ||
| Property, plant, and equipment | 11,700,000 | 14,700,000 | ||||
| Other assets | 1,070,000 | 1,570,000 | ||||
| Current liabilities | 4,700,000 | 4,700,000 | ||||
| Long-term liabilities | 6,700,000 | 6,200,000 | ||||
Required: Calculate the amount paid for goodwill.
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Fundamentals of Corporate Finance
Authors: Berk, DeMarzo, Harford
2nd edition
978-0132148238
