Pro-tech Software acquired all of the outstanding stock of Reliable Software for $19 million. The book value of Reliable’s net assets (assets minus liabilities) was $8.8 million. The fair values of Reliable’s assets and liabilities equaled their book values with the exception of certain intangible assets whose fair values exceeded book values by $3.0 million. Calculate the amount paid for goodwill.
Pro-tech Software acquired all of the outstanding stock of Reliable Software for $19 million. The book value of Reliable’s net assets (assets minus liabilities) was $8.8 million. The fair values of Reliable’s assets and liabilities equaled their book values with the exception of certain intangible assets whose fair values exceeded book values by $3.0 million. Calculate the amount paid for goodwill.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Pro-tech Software acquired all of the outstanding stock of Reliable Software for $19 million. The book value of Reliable’s net assets (assets minus liabilities) was $8.8 million. The fair values of Reliable’s assets and liabilities equaled their book values with the exception of certain intangible assets whose fair values exceeded book values by $3.0 million.
Calculate the amount paid for
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