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On March 1, 2023, Forest Inc. issued 50,000 voting common shares in return for all the common shares of Mountain Corporation. At that time, Forrest's shares were trading at $19 per share. After the transaction, the original shareholder group of Forrest retained control. Below is information related to Mountain Corporation:

On March 1, 2023, Forest Inc. issued 50,000 voting common shares in return for all the common shares of Mountain Corporation. At that time, Forrest's shares were trading at $19 per share. After the transaction, the original shareholder group of Forrest retained control. Below is information related to Mountain Corporation:

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 March 1, 2023, Forrest Inc. issued 50,000 voting common shares in return for all the common shares of Mountain Corporation. At that time, Forrest's shares were trading at $19 per share. After the transaction, the original shareholder group of Forrest retained control. Below is information related to Mountain Corporation: 4 Fair value Canying value $ 75,000 $ 75,000 150,000 125,000 275,000 315,000 650,000 550,000 $1,150,000 $1.065.000 Cash Accounts receivable Inventory Property, plant, and equipment (net) Total assets Current liabilities Long-term debt Common shares Retained earning Total habilities and shareholders' equity $1.150.000 What amount of goodwill would be recorded in the consolidated statement of financial position as a result of this acquisition? $275,000 $105,000 $265,000 $115,000 $ 115,000 275,000 150,000 610,000 $115,000 275,000
Transcribed Image Text:On March 1, 2023, Forrest Inc. issued 50,000 voting common shares in return for all the common shares of Mountain Corporation. At that time, Forrest's shares were trading at $19 per share. After the transaction, the original shareholder group of Forrest retained control. Below is information related to Mountain Corporation: 4 Fair value Canying value $ 75,000 $ 75,000 150,000 125,000 275,000 315,000 650,000 550,000 $1,150,000 $1.065.000 Cash Accounts receivable Inventory Property, plant, and equipment (net) Total assets Current liabilities Long-term debt Common shares Retained earning Total habilities and shareholders' equity $1.150.000 What amount of goodwill would be recorded in the consolidated statement of financial position as a result of this acquisition? $275,000 $105,000 $265,000 $115,000 $ 115,000 275,000 150,000 610,000 $115,000 275,000
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