On April 1, 20X2, Jack Company paid $800,000 for all of Ann Corporation's issued and outstanding common stock. Ann's recorded assets and liabilities on April 1, 20X2, were as follows: Cash Inventory $80,000 240,000 Property & equipment (net of accumulated depreciation of $320,000) 480,000 Liabilities (180,000) On April 1, 20X2, Ann's inventory was determined to have a fair value of $190,000, and the property and equipment had a fair value of $560,000. What is the amount of goodwill resulting from the business combination? a. $50,000 b. $0 c. $180,000 d. $150,000
On April 1, 20X2, Jack Company paid $800,000 for all of Ann Corporation's issued and outstanding common stock. Ann's recorded assets and liabilities on April 1, 20X2, were as follows: Cash Inventory $80,000 240,000 Property & equipment (net of accumulated depreciation of $320,000) 480,000 Liabilities (180,000) On April 1, 20X2, Ann's inventory was determined to have a fair value of $190,000, and the property and equipment had a fair value of $560,000. What is the amount of goodwill resulting from the business combination? a. $50,000 b. $0 c. $180,000 d. $150,000
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter14: Statement Of Cash Flows
Section: Chapter Questions
Problem 37E: During 20X1, Craig Company had the following transactions: a. Purchased 300,000 of 10-year bonds...
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
Transcribed Image Text:On April 1, 20X2, Jack Company paid $800,000 for all of Ann Corporation's issued and
outstanding common stock. Ann's recorded assets and liabilities on April 1, 20X2, were as
follows:
Cash
Inventory
$80,000
240,000
Property & equipment (net of accumulated depreciation of $320,000) 480,000
Liabilities
(180,000)
On April 1, 20X2, Ann's inventory was determined to have a fair value of $190,000, and
the property and equipment had a fair value of $560,000. What is the amount of goodwill
resulting from the business combination?
a. $50,000
b. $0
c. $180,000
d. $150,000
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