On May 31, 2021 Armstrong paid $3,500,000 to acquire all of the common stock of Police Corp which then became a division of Armstrong. Police reported the following balance sheet at the time of acquisition Current Assets $900,000 NonCurrent Assets $2,700.000 Current Liabilities $600,000 Longterm Liabilities $500,000 Stockholder's Equity $2,500,000 It was determined at the date of the purchase that the fair value of the identifiable net assets of Hall was $3,100,000 at December 31, 2021, Police reports the following balance sheet information Current Assets $800,000 Noncurrent Assets (including goodwill recognized in purchase) $2,400,000 Current Liabilities ($700,000) Longterm Liabilities ($500,000) Net Assets $2,000,000 At 12/31/2021 the FMV of Police division is $2,200,000 How much Goodwill is recognized at May 31, 2021?
7. On May 31, 2021 Armstrong paid $3,500,000 to acquire all of the common stock of Police Corp which then became a division of Armstrong. Police reported the following
Current Assets $900,000
NonCurrent Assets $2,700.000
Current Liabilities $600,000
Longterm Liabilities $500,000
It was determined at the date of the purchase that the fair value of the identifiable net assets of Hall was $3,100,000 at December 31, 2021, Police reports the following balance sheet information
Current Assets $800,000
Noncurrent Assets (including
Current Liabilities ($700,000)
Longterm Liabilities ($500,000)
Net Assets $2,000,000
At 12/31/2021 the FMV of Police division is $2,200,000
How much Goodwill is recognized at May 31, 2021?
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