Westwood Inc. paid $950,000 cash on August 15 to acquire all issued and outstanding common stock of Brook dale Corp.. The carrying values for Brook dale's assets and liabilities on August 15 are as follows: Asset/Liability Cash Accounts Receivable Carrying Value $180,000 $220,000 Capitalized Software Costs $400,000 Goodwill Liabilities Net Assets $120,000 $(150,000)$ $750,000 On August 15, the fair value of Brook dale's accounts receivable was $180,000. Additionally, Brook dale's in-process research and development was estimated to have a fair value of $250,000. All other assets and liabilities were stated at fair value. On Westwood's August 15 consolidated balance sheet, how much is reported for goodwill?

Westwood Inc. paid $950,000 cash on August 15 to acquire all issued and outstanding common stock of Brook dale Corp.. The carrying values for Brook dale's assets and liabilities on August 15 are as follows: Asset/Liability Cash Accounts Receivable Carrying Value $180,000 $220,000 Capitalized Software Costs $400,000 Goodwill Liabilities Net Assets $120,000 $(150,000)$ $750,000 On August 15, the fair value of Brook dale's accounts receivable was $180,000. Additionally, Brook dale's in-process research and development was estimated to have a fair value of $250,000. All other assets and liabilities were stated at fair value. On Westwood's August 15 consolidated balance sheet, how much is reported for goodwill?

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter4: The Balance Sheet And The Statement Of Shareholders' Equity

Section: Chapter Questions

Problem 7RE

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