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.

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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