Acquiring net assets that do not constitute a business Assume on January 1, 2022 an investor company paid $1,485 to an investee company in exchange for the following assets and abilities transferred from the investee company: Asset (Liability) Estimated Fair Value Production equipment $525 Factory Licenses In addition, the investor provided to the seller contingent consideration with a fair value of $150 and the investor paid an additional $60 of transaction costs to an unaffiliated third party. The contingent consideration is not a derivative financial instrument. The fair values are measured in accordance with FASB ASC 820: Fair Value Measurement. 600 375 Assume the net assets transferred from the investee do not qualify as a "business," as that term is defined in FASB ASC Master Glossary At what amount will Goodwill be reported in the financial statements of the acquiring company on January 1, 20227 Select one: 0 145 Ob$135 O CSIS d.10

Acquiring net assets that do not constitute a business Assume on January 1, 2022 an investor company paid $1,485 to an investee company in exchange for the following assets and abilities transferred from the investee company: Asset (Liability) Estimated Fair Value Production equipment $525 Factory Licenses In addition, the investor provided to the seller contingent consideration with a fair value of $150 and the investor paid an additional $60 of transaction costs to an unaffiliated third party. The contingent consideration is not a derivative financial instrument. The fair values are measured in accordance with FASB ASC 820: Fair Value Measurement. 600 375 Assume the net assets transferred from the investee do not qualify as a "business," as that term is defined in FASB ASC Master Glossary At what amount will Goodwill be reported in the financial statements of the acquiring company on January 1, 20227 Select one: 0 145 Ob$135 O CSIS d.10

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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