Mainline Produce Corporation acquired all the outstanding common stock of Iceberg Lettuce Corporation for $32,000,000 in cash. The book values and fair values of Iceberg's assets and liabilities were as follows: Book Value Fair Value $ 12,000,000 $ 15,000,000 21,400,000 3,600,000 8,000,000 14,000,000 Current assets Property, plant, and equipment Other assets 27,400,000 4,600,000 8,000,000 13,000,000 Current liabilities Long-term liabilities Required: Calculate the amount paid for goodwill. (Enter your answer in millions (i.e. 5,000,000 should be entered as 5).) Amount paid for goodwill million
Mainline Produce Corporation acquired all the outstanding common stock of Iceberg Lettuce Corporation for $32,000,000 in cash. The book values and fair values of Iceberg's assets and liabilities were as follows: Book Value Fair Value $ 12,000,000 $ 15,000,000 21,400,000 3,600,000 8,000,000 14,000,000 Current assets Property, plant, and equipment Other assets 27,400,000 4,600,000 8,000,000 13,000,000 Current liabilities Long-term liabilities Required: Calculate the amount paid for goodwill. (Enter your answer in millions (i.e. 5,000,000 should be entered as 5).) Amount paid for goodwill million
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
![Mainline Produce Corporation acquired all the outstanding common stock of Iceberg Lettuce Corporation for $32,000,000 in cash.
The book values and fair values of Iceberg's assets and liabilities were as follows:
Book Value
Fair Value
$ 12,000,000 $ 15,000,000
21,400,000
3,600,000
8,000,000
14,000,000
Current assets
Property, plant, and equipment
Other assets
27,400,000
4,600,000
8,000,000
13,000,000
Current liabilities
Long-term liabilities
Required:
Calculate the amount paid for goodwill. (Enter your answer in millions (i.e. 5,000,000 should be entered as 5).)
Amount paid for goodwill
million](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F2026c0b0-7b1d-4913-b534-a9aba708cafe%2Fb5f34dd8-4421-453c-a48e-88dd4d633df9%2Fv0qttpj.png&w=3840&q=75)
Transcribed Image Text:Mainline Produce Corporation acquired all the outstanding common stock of Iceberg Lettuce Corporation for $32,000,000 in cash.
The book values and fair values of Iceberg's assets and liabilities were as follows:
Book Value
Fair Value
$ 12,000,000 $ 15,000,000
21,400,000
3,600,000
8,000,000
14,000,000
Current assets
Property, plant, and equipment
Other assets
27,400,000
4,600,000
8,000,000
13,000,000
Current liabilities
Long-term liabilities
Required:
Calculate the amount paid for goodwill. (Enter your answer in millions (i.e. 5,000,000 should be entered as 5).)
Amount paid for goodwill
million
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