Trisha Corp. has 40 million shares outstanding and trades at $45 per share. Trisha has net identifiable assets with a book value of $1.5 billion and a fair value of $1.8 billion. Regal Enterprises purchases all of Trisha Corp.'s stock for $55 per share. How much will Regal Enterprises record as goodwill upon acquiring Trisha Corp.?
Trisha Corp. has 40 million shares outstanding and trades at $45 per share. Trisha has net identifiable assets with a book value of $1.5 billion and a fair value of $1.8 billion. Regal Enterprises purchases all of Trisha Corp.'s stock for $55 per share. How much will Regal Enterprises record as goodwill upon acquiring Trisha Corp.?
Chapter9: Acquisitions Of Property
Section: Chapter Questions
Problem 44P
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Transcribed Image Text:Trisha Corp. has 40 million shares outstanding and trades
at $45 per share. Trisha has net identifiable assets with a
book value of $1.5 billion and a fair value of $1.8 billion.
Regal Enterprises purchases all of Trisha Corp.'s stock for
$55 per share.
How much will Regal Enterprises record as goodwill upon
acquiring Trisha Corp.?
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