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Sugar Corp acquires only the assets of Syrup Limited for $2,700,000 cash on October 1, 20X9. Just before the transaction, Syrup has the following assets
Sugar Corp acquires only the assets of Syrup Limited for $2,700,000 cash on October 1, 20X9. Just before the transaction, Syrup has the following assets and liabilities at October 1,20x9 (in thousands of dollars): Cash $50 Accounts receivable 2301 Inventory 470 Property, plant, and equipment (PPE), net 1.750 Total assets 2.500 Accounts payable $360 Loan payable 650 Common shares 8001 Retained earnings 6901 Total liabilities and shareholders' equity 2,500 The only items that have a fair value different from its carrying value are (1) PPE, which has a fair value of $1,900; and (2) loan payable, which has a fair value of 700. What is the goodwill (in thousands of dollars) that Sugar should recognize for this transaction
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