Question
Our company purchased all of the outstanding stock of another company, paying $2,700,000 cash. Our company assumed all of the liabilities of other company. Book
Our company purchased all of the outstanding stock of another company, paying $2,700,000 cash. Our company assumed all of the liabilities of other company. Book values and fair values of acquired assets and liabilities were as follows.
| Book Value | Fair Value | ||||
| Current assets, net | $ 420,000 | $ 450,000 | |||
| Property, plant and equpment, net | $ 1,600,000 | $ 2,250,000 | |||
| Liabilities | $ 500,000 | $ 600,000 | |||
Our company would record goodwill of
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Financial Accounting An Integrated Statements Approach
Authors: Jonathan E. Duchac, James M. Reeve, Carl S. Warren
2nd Edition
324312113, 978-0324312119
