Raider Co. recently acquired all of Lost Arc, Inc.'s net assets in a business acquisition. The cash purchase price was $7.8 million. Lost Arc, Inc.'s assets and liabilities had the following appraised values immediately prior to the acquisition: land, $2.1 million; buildings, $3.8 million; inventory, $2.6 million; long-term notes payable, for which Raider Co. assumes payment responsibilities, $1.9 million. How much goodwill will result from this transaction? (Enter your answers in whole dollars.)

Raider Co. recently acquired all of Lost Arc, Inc.'s net assets in a business acquisition. The cash purchase price was $7.8 million. Lost Arc, Inc.'s assets and liabilities had the following appraised values immediately prior to the acquisition: land, $2.1 million; buildings, $3.8 million; inventory, $2.6 million; long-term notes payable, for which Raider Co. assumes payment responsibilities, $1.9 million. How much goodwill will result from this transaction? (Enter your answers in whole dollars.)

Auditing: A Risk Based-Approach (MindTap Course List)

11th Edition

ISBN:9781337619455

Author:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Publisher:Karla M Johnstone, Audrey A. Gramling, Larry E. Rittenberg

Chapter12: Auditing Long-lived Assets And Merger And Acquisition Activity

Section: Chapter Questions

Problem 37RQSC

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