Question
Topic: Goodwill or gain of bargain purchases in business combination On July 1, Winter Inc. paid $50,000,000 by cash to acquire summer Inc. Summer Inc.
Topic: Goodwill or gain of bargain purchases in business combination
On July 1, Winter Inc. paid $50,000,000 by cash to acquire summer Inc. Summer Inc. was dissolved after the acquisition. The information of summer Inc. net assets fair value is as follows (in thousands):
|
| January 1 | July 1 |
| cash | $10,000 | $12,000 |
| Accounts receivable | $20,000 | $15,000 |
| inventories | $25,000 | $32,000 |
| Plant assets | $40,000 | $40,000 |
| Accounts payable | $14,000 | $15,000 |
| Notes payable | $28,000 | $25,000 |
Required: calculate the goodwill or the gain from bargain purchase of the business combination.
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Financial Accounting A Management Perspective
Authors: Nelson Macwan
1st Edition
6206142191, 978-6206142195
