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On January 1, 2022, Parent acquired Sub by issuing $46,000 in common shares. On that date, Sub's fair value of Current Assets and Fixed Assets were worth $7,000 and $59,000, respectively. The fair value of current liabilities on the date of acquisition was $21,000. There was a previously unrecorded patent for the Sub, that can now be recognized, in the amount of $11,000 Calculate goodwill on the date of acquisition.

On January 1, 2022, Parent acquired Sub by issuing $46,000 in common shares. On that date, Sub's fair value of Current Assets and Fixed Assets were worth $7,000 and $59,000, respectively. The fair value of current liabilities on the date of acquisition was $21,000. There was a previously unrecorded patent for the Sub, that can now be recognized, in the amount of $11,000 Calculate goodwill on the date of acquisition.

FINANCIAL ACCOUNTING
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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On January 1, 2022, Parent acquired Sub by issuing $46,000 in common shares. On that date, Sub's fair value of Current Assets and Fixed Assets were worth $7,000 and $59,000, respectively. The fair value of current liabilities on the date of acquisition was $21,000. There was a previously unrecorded patent for the Sub, that can now be recognized, in the amount of $11,000 Calculate goodwill on the date of acquisition.
Transcribed Image Text:On January 1, 2022, Parent acquired Sub by issuing $46,000 in common shares. On that date, Sub's fair value of Current Assets and Fixed Assets were worth $7,000 and $59,000, respectively. The fair value of current liabilities on the date of acquisition was $21,000. There was a previously unrecorded patent for the Sub, that can now be recognized, in the amount of $11,000 Calculate goodwill on the date of acquisition.
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