Pug purchased Shelly by issuing common stock valued at $400,000. The book value and fair value of
Fantastic news! We've Found the answer you've been seeking!
Question:
Pug purchased Shelly by issuing common stock valued at $400,000. The book value and fair value of Shelly at the time of acquisition was:
Book Value Fair Value
Cash $30,000 $30,000
Accounts Receivable 50,000 50,000
Inventory 60,000 70,000
Equipment (net) 80,000 60,000
Building (net) 200,000 250,000
Accounts Payable 100,000 100,000
Common Stock 100,000
Retained Earnings 220,000
If Pug acquires 90% of Shelly, what amount will be recorded as Goodwill?
a. $40,000
b. $720,000
c. $76,000
d. $112,000
Expert Answer:
Posted Date:
