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The balance sheet of Seattle Company, along with market values of its assets and liabilities, is as follows: Seattle Company book value dr (cr) market

The balance sheet of Seattle Company, along with market values of its assets and liabilities, is as follows:

Seattle Company

book value

dr (cr)

market value

dr (cr)

Current assets

$ 2,000,000

$ 1,500,000

Plant & equipment (net)

30,000,000

35,000,000

Patents

100,000

2,000,000

Completed technology

0

10,000,000

Broader customer base

0

16,000,000

Licensing agreements

0

4,000,000

Goodwill

200,000

700,000

Liabilities

(28,000,000)

(30,000,000)

Common stock, $10 par

(1,000,000)

Additional paid-in capital

(5,000,000)

Retained earnings

1,700,000

Portland Company pays $100,000,000 in cash for Seattle Companys assets and liabilities. Portland records goodwill of

$50,800,000

$66,800,000

$61,500,000

$77,500,000

None of the above

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