Northern Equipment Corporation purchased all the outstanding common stock of Pioneer Equipment Rental tor $5,550,000 in cash. The book values and fair values of Pioneer's assets and liabilities were: Book Value Fair Value Accounts Receivable Buildings Equipment Accounts Payable 700,000 $ 4,050,000 120,000 (800,000) $ 4,070,000 600,000 4,750,000 210,000 (800,000) $ 4,760,000 Net assets Required: 1. Calculate the amount Northern Equipment should report for goodwill. Goodwill 2. Record Northern Equipment's acquisition of Pioneer Equipment Rental. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

Northern Equipment Corporation purchased all the outstanding common stock of Pioneer Equipment Rental tor $5,550,000 in cash. The book values and fair values of Pioneer's assets and liabilities were: Book Value Fair Value Accounts Receivable Buildings Equipment Accounts Payable 700,000 $ 4,050,000 120,000 (800,000) $ 4,070,000 600,000 4,750,000 210,000 (800,000) $ 4,760,000 Net assets Required: 1. Calculate the amount Northern Equipment should report for goodwill. Goodwill 2. Record Northern Equipment's acquisition of Pioneer Equipment Rental. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

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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