What amount of goodwill is recorded for this financial accounting question? Horizon Technologies purchased Fusion Electronics for $30,000,000cash in 2020. At the time of purchase, Fusion Electronics' assetshad a market value of $40,000,000 and liabilities had a market valueof $28,000,000. Fusion Electronics' assets had a book value of$18,000,000 and liabilities had a book value of $12,000,000. Whatamount of goodwill is recorded?

To calculate the amount of goodwill recorded, we can use the following formula: Goodwill = Purchase…

Answered: Horizon Technologies purchased Fusion…

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter11: Long-term Assets

Section: Chapter Questions

Problem 11PB: On May 1, 2015, Zoe Inc. purchased Branta Corp. for $15,000,000 in cash. They only received...

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Similar questions

On January 1, 2024, Jackson purchased ABC Company for $900,000. At the time, ABC Company had assets with a market value of $320,000 and liabilities with a market value of $100,000. What is the amount of goodwill Jackson should report on January 1, 2024? O $220,000 $480.000 $680,000 O $420,000
Please show your solution.
On September 1, 2020, Blue Corporation acquired Larkspur Enterprises for a cash payment of $790,000. At the time of purchase, Larkspur's balance sheet showed assets of $630,000, liabilities of $250,000, and owners' equity of $380,000. The fair value of Larkspur's assets is estimated to be $820,000. Compute the amount of goodwill acquired by Blue. Value assigned to goodwill 80000
On September 1, 2019, Winans Corporation acquired Aumont Enterprises for a cash payment of £800,000. At the time of purchase, Aumont’s statement of financial position showed assets of £600,000, liabilities of £200,000, and equity of £400,000. The fair value of Aumont’s assets is estimated to be £800,000. Compute the amount of goodwill acquired by Winans.
On September 1, 2020, Culver Corporation acquired Splish Brothers Enterprises for a cash payment of $690,000. At the time of purchase, Splish Brothers’s balance sheet showed assets of $620,000, liabilities of $240,000, and owners’ equity of $380,000. The fair value of Splish Brothers’s assets is estimated to be $860,000.Compute the amount of goodwill acquired by Culver.
On January 1, 2020, Azure Corporation purchased Sparrow Corporation for $20 million. Of the $20 million purchase price, $2 million was allocated to goodwill. What is Azure’s amortization deduction related to the goodwill for 2020? Round your answer to the nearest whole dollar.
Jacky Inc. purchased Manzanita Marine on June 1, 2015 for $25,000,000 and recorded goodwill of $3,100,000 in connection with the purchase. At December 31, 2018, the Manzanita Marine Division had a fair value of $25,400,000. The net assets of Manzanita (including goodwill) had a fair value of $24,900,000 at that time. What amount of loss on impairment of goodwill should Jacky record in 2018?
Geet Marketing is acquiring Tusk Co. for $565,000 in cash. Tusk has fixed assets with a book value of $302,000 and an estimated market value of $400,000, plus net working capital of $57,000. What amount of goodwill will Geet Marketing record in its books?
What amount of goodwill is recorded on these general accounting question?
First Company purchased Second Company for $19,000,000 cash. At the time of purchase, Second Company's assets had a market value of $28,000,000 and the liabilities had a market value of $13,000,000. At the time of the purchase, Second Company's assets had a book value of $15,000,000, and the liabilities had a book value of $9,000,000. What amount of goodwill is recorded?
Global Positioning Net purchased equipment on January 1, 2018, for $15,233. Suppose Global Positioning Net sold the equipment for $11,000 on December 31, 2020. Accumulated Depreciation as of December 31, 2020, was $10,155. Journalize the sale of the equipment, assuming straight-line depreciation was used. First, calculate any gain or loss on the disposal of the equipment. Market value of assets received Less: Book value of asset disposed of Cost Less: Accumulated Depreciation Gain or (Loss)
On August 1, 2017, Riverbed Corporation acquired Marin, Inc. for a cash payment of $2.30 million. At the time of purchase, Marin’s balance sheet showed assets of $4,422,000, liabilities of $2,622,000, and owners’ equity of $1,800,000. The fair value of Marin’s identifiable assets is estimated to be $4,330,000.Compute the amount of goodwill acquired by Riverbed.

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