On June 1, Cline Co. paid $877,000 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 Accounts receivable. Capitalized software costs Goodwill Liabilities Net assets $ 166,000 184,000 341,000 148,000 (200,000) $ 639,000 On June 1, Renn's accounts receivable had a fair value of $142,000. Additionally, Renn's in-process research and development was estimated to have a fair value of $256,000. 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 $877,000 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 Accounts receivable. Capitalized software costs Goodwill Liabilities Net assets $ 166,000 184,000 341,000 148,000 (200,000) $ 639,000 On June 1, Renn's accounts receivable had a fair value of $142,000. Additionally, Renn's in-process research and development was estimated to have a fair value of $256,000. All other items were stated at their fair values. On Cline's June 1 consolidated balance sheet, how much is reported for goodwill?
Chapter1: Financial Statements And Business Decisions
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Transcribed Image Text:On June 1, Cline Co. paid $877,000 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
Accounts receivable.
Capitalized software costs
Goodwill
Liabilities
Net assets
$ 166,000
184,000
341,000
148,000
(200,000)
$ 639,000
On June 1, Renn's accounts receivable had a fair value of $142,000. Additionally, Renn's in-process research and development was estimated to have a
fair value of $256,000. All other items were stated at their fair values. On Cline's June 1 consolidated balance sheet, how much is reported for
goodwill?
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