Pablo Foods Ltd. acquires all the outstanding stock of Northern Harvest Inc. for $15 million. The fair value of Northern Harvest's assets is $10.4 million, and the fair value of its liabilities is $2.1 million. Calculate the amount paid for goodwill. Step by step answer
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Pablo Foods Ltd. acquires all the outstanding stock of Northern Harvest Inc. for $15 million. The fair value of Northern Harvest's assets is $10.4 million, and the fair value of its liabilities is $2.1 million. Calculate the amount paid for goodwill. Step by step answer
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- Bryer Co. purchases all of the assets and liabilities of Stellar Co. for $1,500,000. The fair value of Stellar’s assets is $2,000,000, and its liabilities have a fair value of $1,200,000. The book value of Stellar’s assets and liabilities are not known. For what amount would Bryer record goodwill associated with the purchase? a. $800,000.b. $500,000.c. $700,000.d. $0.Tender, Inc. dominates the snack-food industry with its Tasty-Chip brand. Assume that Tender, Inc. purchased Concord Snacks, Inc. for $10.4 million cash. The market value of Concord Snacks' assets is $18.6 millia and Concord Snacks has liabilities of $12.7 mllion. Requirements 1. Compute the cost of the goodwill purchased by Tender. 2. Explain how Tender will account for goodwill in future years. Requirement 1. Compute the cost of the goodwill purchased by Tender. (Enter amounts in millions to the nearest tenth of a million, XX) Market value of Concord Snacks' net assets: Less Cost of goodwill Requirement 2. Explain how Tender will account for goodwill in future years. has increased decreased in value. If the goodwill's value has increased, future Tender, Inc. will determine whether its goodwill or decreased, In years, V But goodwill's value has if Choose from any list or enter any number in the input fields and then continue to the next question.Robinson Company purchased Franklin Company at a price of $3,820,000. The fair market value of the net assets purchased equals $2,750,000. 1. What is the amount of goodwill that Robinson records at the purchase date? 2. Does Robinson amortize goodwill at year-end? 3. Robinson believes that its employees provide superior customer service, and through their efforts, Robinson believes it has created $1,520,000 of goodwill. Should Robinson Company record this goodwill? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 What is the amount of goodwill that Robinson records at the purchase date? Goodwill
- Short Corporation acquired Hathaway, Inc., for $32,620,000. The fair value of all Hathaway's identifiable tangible and intangible assets was $31,800,000. Short will amortize any goodwill over the maximum number of years allowed. What is the annual amortization of goodwill for this acquisition?AlpeshJava Dreams shows assets of $86,400 and liabilities of $15,000. The fair value of the assets is $90,000 and the fair value of its liabilities is $15,000. One Mean Bean paid Java Dreams $95,000 to acquire all of its assets and liabilities. One Mean Bean should record goodwill on this purchase as: $20,000 $3,600 $5,000 $23,600
- Brinker International Inc.the parent of Chili's, acquired Thallicious for $32,170,000. The fair value of all Thailicioustangible and intangible assets was $30.000.000 Brinker will amortize any goodwill over the maximum number of years allowedWhat is the annual amortization of goodwill for this acquisition?Geet Marketing is acquiring Tusk Co. for $565,000 in cash. Tusk has fixed assets with a book value of $302,000 and an estimated market value of $400,000, plus net working capital of $57,000. What amount of goodwill will Geet Marketing record in its books?TMZ, Inc., dominates the snack-food industry with its Salty Chip brand. Assume that TMZ purchased Seacoast Snacks Company for $5.7 million cash. The market value of Seacoast Snacks' assets is $5 million, and Seacoast Snacks has liabilities with a market value of $4.1 million. Read the requirements. ... Requirement 1. Compute the cost of the goodwill purchased by TMZ. (Enter amounts in millions to the nearest tenth of a million as provided in the problem statement, X.X.) Less: Cost of goodwill