Jernigan Corp. had the following account balances: Receivables $96,000 Inventory $240,000 Land $720,000 Building $600,000 Liabilities ($480,000) Common Stock ($120,000) Additional paid in capital ($120,000) Retained Earnings Beginning ($840,000) Revenue Expense ($360,000) $264,000 Several of Jernigan's accounts have fair values that differ from book value: Land $480,000 Building $720,000 Inventory $336,000 Liabilities ($396,000) Inglewood Inc. obtained all of the outstanding common shares of Jernigan by issuing 20,000 shares of common stock having a $6 par value, but a $66 fair value. Stock issuance costs amounted to $12,000. How much goodwill will be recorded from this transaction?
Jernigan Corp. had the following account balances: Receivables $96,000 Inventory $240,000 Land $720,000 Building $600,000 Liabilities ($480,000) Common Stock ($120,000) Additional paid in capital ($120,000) Retained Earnings Beginning ($840,000) Revenue Expense ($360,000) $264,000 Several of Jernigan's accounts have fair values that differ from book value: Land $480,000 Building $720,000 Inventory $336,000 Liabilities ($396,000) Inglewood Inc. obtained all of the outstanding common shares of Jernigan by issuing 20,000 shares of common stock having a $6 par value, but a $66 fair value. Stock issuance costs amounted to $12,000. How much goodwill will be recorded from this transaction?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Jernigan Corp. had the following account balances:
Receivables
$96,000
Inventory
$240,000
Land
$720,000
Building
$600,000
Liabilities
($480,000)
Common Stock
($120,000)
Additional paid in capital
($120,000)
Retained Earnings Beginning ($840,000)
Revenue
Expense
($360,000)
$264,000
Several of Jernigan's accounts have fair values that differ from book value:
Land
$480,000
Building $720,000
Inventory $336,000
Liabilities ($396,000)
Inglewood Inc. obtained all of the outstanding common shares of Jernigan by issuing 20,000 shares of common stock having a $6 par value,
but a $66 fair value. Stock issuance costs amounted to $12,000. How much goodwill will be recorded from this transaction?
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