On September 1, 2020, Blue Corporation acquired Larkspur Enterprises for a cash payment of $790,000. At the time of purchase, Larkspur's balance sheet showed assets of $630,000, liabilities of $250,000, and owners' equity of $380,000. The fair value of Larkspur's assets is estimated to be $820,000. Compute the amount of goodwill acquired by Blue. Value assigned to goodwill 80000
On September 1, 2020, Blue Corporation acquired Larkspur Enterprises for a cash payment of $790,000. At the time of purchase, Larkspur's balance sheet showed assets of $630,000, liabilities of $250,000, and owners' equity of $380,000. The fair value of Larkspur's assets is estimated to be $820,000. Compute the amount of goodwill acquired by Blue. Value assigned to goodwill 80000
Chapter11: Long-term Assets
Section: Chapter Questions
Problem 12PB: Farm Fresh Agriculture Company purchased Sunny Side Egg Distribution for $400,000 cash when Sunny...
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![On September 1, 2020, Blue Corporation acquired Larkspur Enterprises for a cash payment of $790,000. At the time of purchase,
Larkspur's balance sheet showed assets of $630,000, liabilities of $250,000, and owners' equity of $380,000. The fair value of
Larkspur's assets is estimated to be $820,000.
Compute the amount of goodwill acquired by Blue.
Value assigned to goodwill
80000](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fe0037993-fc06-4e9a-b4ca-eff80ad003fe%2F20650e22-7002-4a63-a166-4d4a0ded714c%2F7xia749_processed.png&w=3840&q=75)
Transcribed Image Text:On September 1, 2020, Blue Corporation acquired Larkspur Enterprises for a cash payment of $790,000. At the time of purchase,
Larkspur's balance sheet showed assets of $630,000, liabilities of $250,000, and owners' equity of $380,000. The fair value of
Larkspur's assets is estimated to be $820,000.
Compute the amount of goodwill acquired by Blue.
Value assigned to goodwill
80000
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