Question
Suppose the following information is related to legal merger: The combinor issued 10000 common shares with $10 par value and $20 FMV to acquire all
Suppose the following information is related to legal merger: The combinor issued 10000 common shares with $10 par value and $20 FMV to acquire all the voting common stocks of combinee. The business combination costs: direct 10000 and indirect 15000. The net assets of combinee at the FMV 180000.
What is the goodwill?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
To calculate the goodwill in a legal merger we need to compare the fair value of the consideration t...
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Step: 3
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Intermediate Accounting
Authors: Loren A Nikolai, D. Bazley and Jefferson P. Jones
10th Edition
324300980, 978-0324300987
