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Alton Enterprises was recently sold for $620,000. Alton had assets and liabilities appraised at the time of the sale in the amounts of: Accounts Receivable assumed by buyer $120,000 Inventory $310,000 Property, Plant & Equipment (net) $490,000 Notes Payable assumed by buyer $710,000 Using this information, how much should be recorded as Goodwill for this transaction?

Alton Enterprises was recently sold for $620,000. Alton had assets and liabilities appraised at the time of the sale in the amounts of: Accounts Receivable assumed by buyer $120,000 Inventory $310,000 Property, Plant & Equipment (net) $490,000 Notes Payable assumed by buyer $710,000 Using this information, how much should be recorded as Goodwill for this transaction?

FINANCIAL ACCOUNTING
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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Goodwill for this transaction?

Alton Enterprises was recently sold for $620,000. Alton had assets and liabilities appraised at the time of the sale in the amounts of: Accounts Receivable assumed by buyer $120,000 Inventory $310,000 Property, Plant & Equipment (net) $490,000 Notes Payable assumed by buyer $710,000 Using this information, how much should be recorded as Goodwill for this transaction?
Transcribed Image Text:Alton Enterprises was recently sold for $620,000. Alton had assets and liabilities appraised at the time of the sale in the amounts of: Accounts Receivable assumed by buyer $120,000 Inventory $310,000 Property, Plant & Equipment (net) $490,000 Notes Payable assumed by buyer $710,000 Using this information, how much should be recorded as Goodwill for this transaction?
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