Do not give answer in image Wilkins Inc. acquired 100% of the voting common stock of Granger Inc. on January 1, 2021. The book value and fair value of Granger's accounts on that date (prior to creating the combination) are asfollows, along with the book value of Wilkins's accounts:Retained earnings, 1/1/21Cash and receivablesInventoryLandBuildings (net)Equipment (net)LiabilitiesCommon stockAdditional paid-in capitalGrangerFairValueWilkinsBookValueGrangerBookValue$250,000 $240,000170,00070,000$ 70,000230,000 180,000210,000320,000 220,000 240,000480,000 240,000280,000120,00090,00090,000650,000 440,000430,000360,00080,00060,00040,000Assume that Wilkins issued 13,000 shares of common stock, with a $5 par value and a $46 fair value, to obtain all of Granger's outstanding stock. In this acquisition transaction, how much goodwillshould be recognized? Multiple Choice$178,000.$138,000.$98,000.$94,000.$0.

Goodwill:The amount which is excess of the consideration paid over the fair value of net…

Wilkins Inc. acquired 100% of the voting common stock of Granger Inc. on January 1, 2021. The book value and fair value of Granger's accounts on that date (prior to creating the combination) are as follows, along with the book value of Wilkins's accounts: Retained earnings, 1/1/21 Cash and receivables Inventory Land Buildings (net) Equipment (net) Liabilities Common stock Additional paid-in capital Wilkins Book Value Granger Book Value $250,000 $240,000 170,000 70,000 $70,000 230,000 180,000 210,000 320,000 220,000 240,000 280,000 480,000 240,000 120,000 90,000 90,000 Granger Fair Value 650,000 440,000 430,000 80,000 40,000 360,000 60,000 Assume that Wilkins issued 13,000 shares of common stock, with a $5 par value and a $46 fair value, to obtain all of Granger's outstanding stock. In this acquisition transaction, how much goodwill should be recognized?

Wilkins Inc. acquired 100% of the voting common stock of Granger Inc. on January 1, 2021. The book value and fair value of Granger's accounts on that date (prior to creating the combination) are as follows, along with the book value of Wilkins's accounts: Retained earnings, 1/1/21 Cash and receivables Inventory Land Buildings (net) Equipment (net) Liabilities Common stock Additional paid-in capital Wilkins Book Value Granger Book Value $250,000 $240,000 170,000 70,000 $70,000 230,000 180,000 210,000 320,000 220,000 240,000 280,000 480,000 240,000 120,000 90,000 90,000 Granger Fair Value 650,000 440,000 430,000 80,000 40,000 360,000 60,000 Assume that Wilkins issued 13,000 shares of common stock, with a $5 par value and a $46 fair value, to obtain all of Granger's outstanding stock. In this acquisition transaction, how much goodwill should be recognized?

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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