Carla Vista Company's balance sheet at December 31, 2026 reports assets of $994000 and liabilities of $778000. All of Carla Vista's assets book values approximate their fair value, except for land, which has a fair value that is $59000 greater than its book value. In addition, notes payable has a fair value that exceeds its book value by $52000. On December 31, 2026, Sunland Corporation paid $332000 to acquire Carla Vista. What amount of goodwill should Sunland record as a result of this purchase? O $57000 O $5000 O $109000 O $116000
Carla Vista Company's balance sheet at December 31, 2026 reports assets of $994000 and liabilities of $778000. All of Carla Vista's assets book values approximate their fair value, except for land, which has a fair value that is $59000 greater than its book value. In addition, notes payable has a fair value that exceeds its book value by $52000. On December 31, 2026, Sunland Corporation paid $332000 to acquire Carla Vista. What amount of goodwill should Sunland record as a result of this purchase? O $57000 O $5000 O $109000 O $116000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![Carla Vista Company's balance sheet at December 31, 2026 reports assets of $994000 and liabilities of $778000. All of Carla Vista's
assets book values approximate their fair value, except for land, which has a fair value that is $59000 greater than its book value. In
addition, notes payable has a fair value that exceeds its book value by $52000. On December 31, 2026, Sunland Corporation paid
$332000 to acquire Carla Vista.
What amount of goodwill should Sunland record as a result of this purchase?
O $57000
O $5000
O $109000
O $116000](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fefb3926d-a816-4971-85e9-1f0dbdf5436e%2F17e001e9-3961-460f-a83d-cc4c4820a242%2Flu4xaoi_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Carla Vista Company's balance sheet at December 31, 2026 reports assets of $994000 and liabilities of $778000. All of Carla Vista's
assets book values approximate their fair value, except for land, which has a fair value that is $59000 greater than its book value. In
addition, notes payable has a fair value that exceeds its book value by $52000. On December 31, 2026, Sunland Corporation paid
$332000 to acquire Carla Vista.
What amount of goodwill should Sunland record as a result of this purchase?
O $57000
O $5000
O $109000
O $116000
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