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On March 31, 2024, Wolfson Corporation acquired all of the outstanding common stock of Barney Corporation for $17,500,000 in cash. The book values and fair values of Barney's assets and liabilities were as follows: Current assets Property, plant, and equipment Other assets Current liabilities. Long-term liabilities. Required: Calculate the amount paid for goodwill. Goodwill Book Value $6,500,000 11,500,000 1,050,000 4,500,000 6,500,000 Fair Value $ 8,000,000 14,500,000 1,550,000 4,500,000 6,000,000

On March 31, 2024, Wolfson Corporation acquired all of the outstanding common stock of Barney Corporation for $17,500,000 in cash. The book values and fair values of Barney's assets and liabilities were as follows: Current assets Property, plant, and equipment Other assets Current liabilities. Long-term liabilities. Required: Calculate the amount paid for goodwill. Goodwill Book Value $6,500,000 11,500,000 1,050,000 4,500,000 6,500,000 Fair Value $ 8,000,000 14,500,000 1,550,000 4,500,000 6,000,000

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 31, 2024, Wolfson Corporation acquired all of the outstanding common stock of Barney Corporation for $17,500,000 in cash. The book values and fair values of Barney's assets and liabilities were as follows: Current assets Property, plant, and equipment Other assets Current liabilities Long-term liabilities Required: Calculate the amount paid for goodwill. Goodwill Book Value $ 6,500,000 11,500,000 1,050,000 4,500,000 6,500,000 Fair Value $ 8,000,000 14,500,000 1,550,000 4,500,000 6,000,000
Transcribed Image Text:On March 31, 2024, Wolfson Corporation acquired all of the outstanding common stock of Barney Corporation for $17,500,000 in cash. The book values and fair values of Barney's assets and liabilities were as follows: Current assets Property, plant, and equipment Other assets Current liabilities Long-term liabilities Required: Calculate the amount paid for goodwill. Goodwill Book Value $ 6,500,000 11,500,000 1,050,000 4,500,000 6,500,000 Fair Value $ 8,000,000 14,500,000 1,550,000 4,500,000 6,000,000
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