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On March 31, 2021, Wolfson Corporation acquired all of the outstanding common stock of Barney Corporation for $17,000,000 in cash. The book values and fair
On March 31, 2021, Wolfson Corporation acquired all of the outstanding common stock of Barney Corporation for $17,000,000 in cash. The book values and fair values of Barneys assets and liabilities were as follows:
Book Value | Fair Value | |||||
Current assets | $ | 6,000,000 | $ | 7,500,000 | ||
Property, plant, and equipment | 11,000,000 | 14,000,000 | ||||
Other assets | 1,000,000 | 1,500,000 | ||||
Current liabilities | 4,000,000 | 4,000,000 | ||||
Long-term liabilities | 6,000,000 | 5,500,000 | ||||
Required: Calculate the amount paid for goodwill.
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