SFFN Corp. purchased the entire business of AZC, Inc. including all its assets and liabilities for $1,800,000. Below is information related to the two companies: SFFN AZC Fair value of assets $ 3,050,000 $ 1,600,000 Fair value of liabilities 2,575,000 800,000 Reported assets 2,800,000 1,400,000 Reported liabilities 2,500,000 750,000 Net Income for the year 460,000 250,000 How much goodwill will SFFN recognize as a result of its acquisition of AZC? Select one: a. $-0- b. $1,225,000 c. $1,150,000 d. $200,000 e. $1,000,000
SFFN Corp. purchased the entire business of AZC, Inc. including all its assets and liabilities for $1,800,000. Below is information related to the two companies: SFFN AZC Fair value of assets $ 3,050,000 $ 1,600,000 Fair value of liabilities 2,575,000 800,000 Reported assets 2,800,000 1,400,000 Reported liabilities 2,500,000 750,000 Net Income for the year 460,000 250,000 How much goodwill will SFFN recognize as a result of its acquisition of AZC? Select one: a. $-0- b. $1,225,000 c. $1,150,000 d. $200,000 e. $1,000,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
SFFN Corp. purchased the entire business of AZC, Inc. including all its assets and liabilities for $1,800,000. Below is information related to the two companies:
|
|
SFFN |
|
AZC |
|
||||
|
Fair value of assets |
$ |
3,050,000 |
|
$ |
1,600,000 |
|||
|
Fair value of liabilities |
|
2,575,000 |
|
|
800,000 |
|||
|
Reported assets |
|
2,800,000 |
|
|
1,400,000 |
|||
|
Reported liabilities |
|
2,500,000 |
|
|
750,000 |
|||
|
Net Income for the year |
|
460,000 |
|
|
250,000 |
|||
How much
Select one:
a. $-0-
b. $1,225,000
c. $1,150,000
d. $200,000
e. $1,000,000
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