5 Ivanhoe Holdings Ltd. purchased the net assets of Future Ltd. in January 2024 for $9,773,000. Ivanhoe had appraisals conducted thatindicated that the fair values of the assets purchased and liabilities assumed were as follows:InventoryAccounts receivableMachinery(a)$1,515,000942,000Goodwill3,648,000PatentsAccounts payableLoan payable$746,000916,000The patent acquired has 16 years remaining in its useful life. Ivanhoe's management determined that it would contribute to thegeneration of revenues for 8 years, after which it would be obsolete.821,000Determine the amount of goodwill Ivanhoe Holdings Ltd. acquired in the purchase.

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

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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Question

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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