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Required: Calculate the amount paid for goodwill. Goodwill

Required: Calculate the amount paid for goodwill. Goodwill

FINANCIAL ACCOUNTING
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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Hi there, can help with answering the attached questions, thanks so much.

Exercise 10-6 (Algo) Goodwill [LO10-1] On March 31, 2021, Wolfson Corporation acquired all of the outstanding common stock of Barney Corporation for $18,600,000 in cash. The book values and fair values of Barney's assets and liabilities were as follows: Current assets Property, plant, and equipment Other assets Current liabilities Long-term liabilities Required: Calculate the amount paid for goodwill. Goodwill Book Value $ 7,600,000 12,600,000 1,160,000 5,600,000 7,600,000 Fair Value $9,100,000 15,600,000 1,660,000 5,600,000 7,100,000
Transcribed Image Text:Exercise 10-6 (Algo) Goodwill [LO10-1] On March 31, 2021, Wolfson Corporation acquired all of the outstanding common stock of Barney Corporation for $18,600,000 in cash. The book values and fair values of Barney's assets and liabilities were as follows: Current assets Property, plant, and equipment Other assets Current liabilities Long-term liabilities Required: Calculate the amount paid for goodwill. Goodwill Book Value $ 7,600,000 12,600,000 1,160,000 5,600,000 7,600,000 Fair Value $9,100,000 15,600,000 1,660,000 5,600,000 7,100,000
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