Assume that ayisiyiniwiwinak Corp. paid $19 million to purchase 10-Trees Inc. Below is a summary of the balance sheet of 10-Trees Inc. at the time of the ayisiyiniwiwinak Corp. acquisition (amounts are given in million $). The fair value of 10-Tree Inc.'s non-current assets was higher than the book value and amounted to $24 at that time. Assets Current assets Non-current assets Total assets 6 18 24 Liabilities Current liabilities Non-current liabilities Total liabilities Shareholders' equity Common shares Retained earnings Total shareholders' equity Total liabilities and shareholders' equity 8 10 18 2 4 6 24 Requirement 1: Based on the information provided above, fill Blanks 1 and 2. Blank #1: What is the goodwill resulting from this transaction? Enter your response as a plain number (no $-signs or decimals).
Assume that ayisiyiniwiwinak Corp. paid $19 million to purchase 10-Trees Inc. Below is a summary of the balance sheet of 10-Trees Inc. at the time of the ayisiyiniwiwinak Corp. acquisition (amounts are given in million $). The fair value of 10-Tree Inc.'s non-current assets was higher than the book value and amounted to $24 at that time. Assets Current assets Non-current assets Total assets 6 18 24 Liabilities Current liabilities Non-current liabilities Total liabilities Shareholders' equity Common shares Retained earnings Total shareholders' equity Total liabilities and shareholders' equity 8 10 18 2 4 6 24 Requirement 1: Based on the information provided above, fill Blanks 1 and 2. Blank #1: What is the goodwill resulting from this transaction? Enter your response as a plain number (no $-signs or decimals).
Chapter9: Acquisitions Of Property
Section: Chapter Questions
Problem 44P
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Transcribed Image Text:Assume that ayisiyiniwiwinak Corp. paid $19 million to purchase 10-Trees Inc.
Below is a summary of the balance sheet of 10-Trees Inc. at the time of the
ayisiyiniwiwinak Corp. acquisition (amounts are given in million $). The fair value of
10-Tree Inc.'s non-current assets was higher than the book value and amounted to
$24 at that time.
Assets
Current assets
Non-current assets
Total assets
6
18
24
Liabilities
Current liabilities
Non-current liabilities
Total liabilities
Shareholders' equity
Common shares
Retained earnings
Total shareholders' equity
Total liabilities and shareholders' equity
8
10
18
2
4
6
24
Requirement 1: Based on the information provided above, fill Blanks 1 and 2.
Blank #1: What is the goodwill resulting from this transaction? Enter your response
as a plain number (no $-signs or decimals).
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