Mainline Produce Corporation acquired all the outstanding common stock of Iceberg Lettuce Corporation for $30,000,000 in cash. The book values and fair values of Iceberg’s assets and liabilities were as follows: Book Value Fair ValueCurrent assets $11,400,000 $ 14,400,000Property, plant, and equipment 20,200,000 26,200,000Other assets 3,400,000 4,400,000Current liabilities 7,800,000 7,800,000Long-term liabilities 13,200,000 12,200,000Required:Calculate the amount paid for goodwill.
Mainline Produce Corporation acquired all the outstanding common stock of Iceberg Lettuce Corporation for $30,000,000 in cash. The book values and fair values of Iceberg’s assets and liabilities were as follows:
Book Value Fair Value
Current assets $11,400,000 $ 14,400,000
Property, plant, and equipment 20,200,000 26,200,000
Other assets 3,400,000 4,400,000
Current liabilities 7,800,000 7,800,000
Long-term liabilities 13,200,000 12,200,000
Required:
Calculate the amount paid for
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