Question
Pringle Corporation acquires Snax Company at an acquisition cost of $50,000,000. Assets and liabilities of Snax are as follows: Book Value Fair Value Current assets
- Pringle Corporation acquires Snax Company at an acquisition cost of $50,000,000. Assets and liabilities of Snax are as follows:
|
| Book Value | Fair Value |
| Current assets | $ 1,500,000 | $ 800,000 |
| Land, buildings, and equipment (net) | 16,000,000 | 7,000,000 |
| Brand names | -0- | 8,000,000 |
| Liabilities | 12,000,000 | 11,500,000 |
Goodwill arising from this acquisition is:
a. $45,700,000
b. $44,500,000
c. $20,500,000
d. $22,700,000
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Internal Audit Handbook Management With The SAP Audit Roadmap
Authors: Henning Kagermann, William Kinney, Karlheinz Küting, Claus-Peter Weber, Z. Keil, C. Boecker, J. Busch, O. Bussiek, M. H. Christ, P. Eckes, M. Falk, P. S. Greenberg, B. Reichert, M. Wolf
2008th Edition
3642430392, 978-3642430398
