On March 1, 2023, Forrest Inc. issued 50,000 voting common shares in return for all the common shares of MountainCorporation. At that time, Forrest's shares were trading at $19 per share. After the transaction, the original shareholdergroup of Forrest retained control. Below is information related to Mountain Corporation:4Canying valueFair value$ 75,000$ 75,000150,000125,000275,000315,000550,000650,000$1,150,000$1.065.000CashAccounts receivableInventoryProperty, plant, and equipment (net)Total assetsCurrent liabilitiesLong-term debtCommon sharesRetained earning$275,000Total habilities and shareholders' equity$1,150,000What amount of goodwill would be recorded in the consolidated statement of financial position as a result of thisacquisition?$105,000$265,000$ 115,000275,000150,000610,000$115,000$115,000275,000

The cost of investment includes the cash transferred, fair value of assets transferred, fair value…

Answered: On March 1, 2023, Forrest Inc. issued…

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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