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Question: Annapolis Company was recently sold for $490,000. Annapolis had assets & liabilities appraised at the time of the sale in the amounts of: Item Amount Accounts Receivable assumed by buyer $102,000 Inventory $270,000 Property, Plant & Equipment (net) $520,000 Notes Payable assumed by buyer $635,000 Using this information, how much should be recorded as Goodwill for this transaction?

Question: Annapolis Company was recently sold for $490,000. Annapolis had assets & liabilities appraised at the time of the sale in the amounts of: Item Amount Accounts Receivable assumed by buyer $102,000 Inventory $270,000 Property, Plant & Equipment (net) $520,000 Notes Payable assumed by buyer $635,000 Using this information, how much should be recorded as Goodwill for this transaction?

Principles of Accounting Volume 1
Principles of Accounting Volume 1
19th Edition
ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax
Chapter11: Long-term Assets
Section: Chapter Questions
Problem 10PA: Buchanan Imports purchased McLaren Corporation for $5,000,000 cash when McLaren had net assets worth...
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Question: Annapolis Company was recently sold for $490,000. Annapolis had assets & liabilities appraised at the time of the sale in the amounts of: Item Amount Accounts Receivable assumed by buyer $102,000 Inventory $270,000 Property, Plant & Equipment (net) $520,000 Notes Payable assumed by buyer $635,000 Using this information, how much should be recorded as Goodwill for this transaction?
Transcribed Image Text:Question: Annapolis Company was recently sold for $490,000. Annapolis had assets & liabilities appraised at the time of the sale in the amounts of: Item Amount Accounts Receivable assumed by buyer $102,000 Inventory $270,000 Property, Plant & Equipment (net) $520,000 Notes Payable assumed by buyer $635,000 Using this information, how much should be recorded as Goodwill for this transaction?
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