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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?

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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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?
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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