Answered: Bright Horizons Inc. purchased Horizon… | bartleby

Principles of Accounting Volume 1

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter11: Long-term Assets

Section: Chapter Questions

Problem 10PA: Buchanan Imports purchased McLaren Corporation for $5,000,000 cash when McLaren had net assets worth...

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Question

Can you solve this general accounting problem using accurate calculation methods?

Bright Horizons Inc. purchased Horizon Ventures for $3,000,000.
Horizon Ventures had assets with a fair value of $2,600,000 and
liabilities with a fair value of $600,000.
Use this information to determine the dollar value of goodwill.

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Determine the dollar value of goodwill
Determine the dollar value of goodwill
Use below information to get value of goodwill.
Goodwill?
Need help with this accounting question please solve
Calculate the amount paid for goodwill?
Fairgate Company’s 12/31/19 statement of financial position reports assets of $6,000,000 and liabilities of $2,500,000. All of the book values of Fairgate’s assets approximate their fair value, except for land, which has a fair value that is $400,000 greater than its book value. On 12/31/19, Morris Corporation paid $6,500,000 to acquire Fairgate. What amount of goodwill should Morris record as a result of this purchase?
How much goodwill will result?
???
Bryer Co. purchases all of the assets and liabilities of Stellar Co. for $1,500,000. The fair value of Stellar’s assets is $2,000,000, and its liabilities have a fair value of $1,200,000. The book value of Stellar’s assets and liabilities are not known. For what amount would Bryer record goodwill associated with the purchase? a. $800,000.b. $500,000.c. $700,000.d. $0.
Please show your solution.
Oriole Company’s 12/31/21 balance sheet reports assets of $11550000 and liabilities of $4910000. All of Oriole’s assets’ book values approximate their fair value, except for land, which has a fair value that is $710000 greater than its book value. On 12/31/21, Egbert Corporation paid $11744000 to acquire Oriole. What amount of goodwill should Egbert record as a result of this purchase?

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