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 $
Auditing: A Risk Based-Approach (MindTap Course List)
11th Edition
ISBN:9781337619455
Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
Publisher:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg
Chapter12: Auditing Long-lived Assets And Merger And Acquisition Activity
Section: Chapter Questions
Problem 37RQSC
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5
![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.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F05acaf07-400d-4874-8fb4-c4752824bbfb%2F26c95414-0638-4460-8d57-7d3285a6a320%2Fexxrop8_processed.png&w=3840&q=75)
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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