Mainline Produce Corporation acquired all the outstanding common stock of Iceberg Lettuce Corporation for $35,000,000 in cash. The book values and fair values of Iceberg's assets and liabilities were as follows: Current assets Property, plant, and equipment Other assets Current liabilities Long-term liabilities. Amount paid for goodwill Book Value $ 10,200,000 22,800,000 2,000,000 6,200,000 10,800,000 Required: Calculate the amount paid for goodwill. (Enter your answer in millions (i.e. 5,000,000 should be entered as 5).) million Fair Value $ 13,200,000 28,800,000 3,000,000 6,200,000 9,800,000
Mainline Produce Corporation acquired all the outstanding common stock of Iceberg Lettuce Corporation for $35,000,000 in cash. The book values and fair values of Iceberg's assets and liabilities were as follows: Current assets Property, plant, and equipment Other assets Current liabilities Long-term liabilities. Amount paid for goodwill Book Value $ 10,200,000 22,800,000 2,000,000 6,200,000 10,800,000 Required: Calculate the amount paid for goodwill. (Enter your answer in millions (i.e. 5,000,000 should be entered as 5).) million Fair Value $ 13,200,000 28,800,000 3,000,000 6,200,000 9,800,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Mainline Produce Corporation acquired all the outstanding common stock of Iceberg Lettuce Corporation for $35,000,000 in cash.
The book values and fair values of Iceberg's assets and liabilities were as follows:
Current assets
Property, plant, and equipment
Other assets
Current liabilities
Long-term liabilities
Amount paid for goodwill
Book Value
$ 10,200,000
22,800,000
2,000,000
6,200,000
10,800,000
Required:
Calculate the amount paid for goodwill. (Enter your answer in millions (i.e. 5,000,000 should be entered as 5).)
million
Fair Value
$ 13,200,000
28,800,000
3,000,000
6,200,000
9,800,000
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