Benjamin Inc. and Victor Inc. agreed to combine as of January 1, 2023. The book value and fair value of Victor's accounts on that date (prior to creating the combination) follow,along with the book value of Benjamin's accounts:Current assetsBuilding and equipment (net)LiabilitiesCommon StockAdditional paid-in capitalRetained earnings, 1/1/2023O $200,000.BenjaminBookValue$50,000.O $70,000.O $90,000.VictorBookValue$420,000 $170,000 $230,000790,000 410.000 480,000620,000 380,000 380,000400,000 90,000Victor FairValue70,000 30,000120,00080,000Assume that Benjamin issued 10,000 shares of common stock with a $5 par value and a $40 fair value to obtain all of Victor's outstanding stock. In addition, Benjamin paid legalcosts of $8,000 in connection with the acquisition and $4,000 in stock issue costs, which is not yet reflected in the information above.On its acquisition-date consolidated balance sheet, what amount should Beaver report as goodwill?

Investment in Associates and Joint venture and Subsidiary Equity Accounting method - This method is…

Benjamin Inc. and Victor Inc. agreed to combine as of January 1, 2023. The book value and fair value of Victor's accounts on that date (prior to creating the combination) follow, along with the book value of Benjamin's accounts: Current assets Building and equipment (net) Liabilities Common Stock Additional paid-in capital Retained earnings, 1/1/2023 Benjamin Book Value O $200,000. O $50,000. O $70,000. O $90,000. Victor Book Value $420,000 $170,000 $230,000 790,000 410,000 480,000 620,000 380,000 400,000 90,000 70,000 30,000 120,000 Victor Fair Value 80,000 380,000 Assume that Benjamin issued 10,000 shares of common stock with a $5 par value and a $40 fair value to obtain all of Victor's outstanding stock. In addition, Benjamin paid legal costs of $8,000 in connection with the acquisition and $4,000 in stock issue costs, which is not yet reflected in the information above. On its acquisition-date consolidated balance sheet, what amount should Beaver report as goodwill?

Benjamin Inc. and Victor Inc. agreed to combine as of January 1, 2023. The book value and fair value of Victor's accounts on that date (prior to creating the combination) follow, along with the book value of Benjamin's accounts: Current assets Building and equipment (net) Liabilities Common Stock Additional paid-in capital Retained earnings, 1/1/2023 Benjamin Book Value O $200,000. O $50,000. O $70,000. O $90,000. Victor Book Value $420,000 $170,000 $230,000 790,000 410,000 480,000 620,000 380,000 400,000 90,000 70,000 30,000 120,000 Victor Fair Value 80,000 380,000 Assume that Benjamin issued 10,000 shares of common stock with a $5 par value and a $40 fair value to obtain all of Victor's outstanding stock. In addition, Benjamin paid legal costs of $8,000 in connection with the acquisition and $4,000 in stock issue costs, which is not yet reflected in the information above. On its acquisition-date consolidated balance sheet, what amount should Beaver report as goodwill?

FINANCIAL ACCOUNTING

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ISBN:9781259964947

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Chapter1: Financial Statements And Business Decisions

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Question

Benjamin Inc. and Victor Inc. agreed to combine as of January 1, 2023. The book value and fair value of Victor's accounts on that date (prior to creating the combination) follow,
along with the book value of Benjamin's accounts:
Current assets
Building and equipment (net)
Liabilities
Common Stock
Additional paid-in capital
Retained earnings, 1/1/2023
O $200,000.
Benjamin
Book
Value
$50,000.
O $70,000.
O $90,000.
Victor
Book
Value
$420,000 $170,000 $230,000
790,000 410.000 480,000
620,000 380,000 380,000
400,000 90,000
Victor Fair
Value
70,000 30,000
120,000
80,000
Assume that Benjamin issued 10,000 shares of common stock with a $5 par value and a $40 fair value to obtain all of Victor's outstanding stock. In addition, Benjamin paid legal
costs of $8,000 in connection with the acquisition and $4,000 in stock issue costs, which is not yet reflected in the information above.
On its acquisition-date consolidated balance sheet, what amount should Beaver report as goodwill?

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