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Determine the amount of goodwill Ivanhoe Holdings Ltd. acquired in the purchase. tA Goodwill $

Determine the amount of goodwill Ivanhoe Holdings Ltd. acquired in the purchase. tA Goodwill $

FINANCIAL ACCOUNTING
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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Ivanhoe Holdings Ltd. purchased the net assets of Future Ltd. in January 2024 for $9,773,000. Ivanhoe had appraisals conducted that indicated that the fair values of the assets purchased and liabilities assumed were as follows: Inventory Accounts receivable Machinery (a) $1,515,000 942,000 Goodwill 3,648,000 Patents Accounts payable Loan payable $746,000 916,000 The patent acquired has 16 years remaining in its useful life. Ivanhoe's management determined that it would contribute to the generation of revenues for 8 years, after which it would be obsolete. 821,000 Determine the amount of goodwill Ivanhoe Holdings Ltd. acquired in the purchase.
Transcribed Image Text:Ivanhoe Holdings Ltd. purchased the net assets of Future Ltd. in January 2024 for $9,773,000. Ivanhoe had appraisals conducted that indicated that the fair values of the assets purchased and liabilities assumed were as follows: Inventory Accounts receivable Machinery (a) $1,515,000 942,000 Goodwill 3,648,000 Patents Accounts payable Loan payable $746,000 916,000 The patent acquired has 16 years remaining in its useful life. Ivanhoe's management determined that it would contribute to the generation of revenues for 8 years, after which it would be obsolete. 821,000 Determine the amount of goodwill Ivanhoe Holdings Ltd. acquired in the purchase.
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