Oriole Manufacturing Corp. decided to expand further by purchasing the net assets of Sheridan Manufacturing Corp. S tatement of financial position at December 31, 2023 includes the following information: Cash Receivables Inventory Plant assets (net) Accounts Payable $242000 455000 278600 1029000 $326000 An appraisal indicates that the fair value of the inventory is $323000 and the fair value of the plant assets is $1231000 llocated to goodwill if Oriole purchases Sheridan for $3042000?

Oriole Manufacturing Corp. decided to expand further by purchasing the net assets of Sheridan Manufacturing Corp. S tatement of financial position at December 31, 2023 includes the following information: Cash Receivables Inventory Plant assets (net) Accounts Payable $242000 455000 278600 1029000 $326000 An appraisal indicates that the fair value of the inventory is $323000 and the fair value of the plant assets is $1231000 llocated to goodwill if Oriole purchases Sheridan for $3042000?

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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Question

Oriole Manufacturing Corp. decided to expand further by purchasing the net assets of Sheridan Manufacturing Corp. Sheridan's
statement of financial position at December 31, 2023 includes the following information:
Cash
Receivables
Inventory
Plant assets (net)
Accounts Payable
$242000
455000
278600
1029000
$326000
An appraisal indicates that the fair value of the inventory is $323000 and the fair value of the plant assets is $1231000. What value is
allocated to goodwill if Oriole purchases Sheridan for $3042000?
O nil, there is no goodwill
O $706400
O $1433400
O $1117000

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