On June 1, Cline Co. paid $800,000 cash for all of the issued and outstanding common stock of Renn Corp. The carrying amounts for Renn’s assets and liabilities on June 1 follow:Cash . . . . . . . . . . . . . . . . . . $150,000 Accounts receivable . . . . . . . . .180,000Capitalized software costs . . . 320,000Goodwill . . . . . . . . . . . . . . . . . 100,000Liabilities . . . . . . . . . . . . .. . . (130,000)Net assets . . . . . . . . . . . . .. . $620,000 On June 1, Renn’s accounts receivable had a fair value of $140,000. Additionally, Renn’s in-process research and development was estimated to have a fair value of $200,000. All other items were stated at their fair values. On Cline’s June 1 consolidated balance sheet, how much is reported for goodwill?
On June 1, Cline Co. paid $800,000 cash for all of the issued and outstanding common stock of
Renn Corp. The carrying amounts for Renn’s assets and liabilities on June 1 follow:
Cash . . . . . . . . . . . . . . . . . . $150,000
Capitalized software costs . . . 320,000
Liabilities . . . . . . . . . . . . .. . . (130,000)
Net assets . . . . . . . . . . . . .. . $620,000
On June 1, Renn’s accounts receivable had a fair value of $140,000. Additionally, Renn’s in-process
research and development was estimated to have a fair value of $200,000. All other items were stated
at their fair values. On Cline’s June 1 consolidated
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