Question
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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Money Laundering Prevention Deterring Detecting And Resolving Financial Fraud
Authors: Jonathan E. Turner
1st Edition
0470874759, 978-0470874752
