Columbia recently acquired all of Mercury's net assets in a business acquisition. The cash purchase price was $22,000,000. Mercury's assests and liabilites had the following costs and appraised values: Current assets Land, building and equipment Current liabilites Mortgage payable How much goodwill will rewult from this transaction? Cost Appraised Value Basis $ 6,000,000 $ 6,000,000 $ 14,000,000 $23,000,000 $4,000,000 $4,000,000 $ 10,000,000 $10,000,000

Columbia recently acquired all of Mercury's net assets in a business acquisition. The cash purchase price was $22,000,000. Mercury's assests and liabilites had the following costs and appraised values: Current assets Land, building and equipment Current liabilites Mortgage payable How much goodwill will rewult from this transaction? Cost Appraised Value Basis $ 6,000,000 $ 6,000,000 $ 14,000,000 $23,000,000 $4,000,000 $4,000,000 $ 10,000,000 $10,000,000

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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