Alpha Company was recently sold for $1,500,000. Alpha assets & liabilities consisted of the following: Item Amount Cash $125,000 Inventory $250,000 Property, Plant & Equipment (net) $600,000 Accounts Payable $210,000 Using this information, how much should be recorded as Goodwill for this transaction?

Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter10: Property, Plant And Equipment: Acquisition And Subsequent Investments
Section: Chapter Questions
Problem 6MC: Ashton Company exchanged a nonmonetary asset with a cost of 30,000 and accumulated depreciation of...
icon
Related questions
Question
100%

Give true answer the accounting question do fast and step by step calculation

Alpha Company was recently sold for $1,500,000. Alpha assets & liabilities
consisted of the following:
Item Amount
Cash $125,000
Inventory $250,000
Property, Plant & Equipment (net) $600,000
Accounts Payable $210,000
Using this information, how much should be recorded as Goodwill for this
transaction?
Transcribed Image Text:Alpha Company was recently sold for $1,500,000. Alpha assets & liabilities consisted of the following: Item Amount Cash $125,000 Inventory $250,000 Property, Plant & Equipment (net) $600,000 Accounts Payable $210,000 Using this information, how much should be recorded as Goodwill for this transaction?
Expert Solution
steps

Step by step

Solved in 2 steps

Blurred answer
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Intermediate Accounting: Reporting And Analysis
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
Principles of Accounting Volume 1
Principles of Accounting Volume 1
Accounting
ISBN:
9781947172685
Author:
OpenStax
Publisher:
OpenStax College