Chapter 10, Problem 10.6E

Goodwill

• LO10–1

On March 31, 2018, Wolfson Corporation acquired all of the outstanding common stock of Barney Corporation for $17,000,000 in cash. The book values and fair values of Barney’s assets and liabilities were as follows:

	Book Value	Fair Value
Current assets	$ 6,000,000	7,500,000
Property, plant, and equipment	11,000,000	14,000,000
Other assets	1,000,000	1,500,000
Current liabilities	4,000,000	4,000,000
Long-term liabilities	6,000,000	5,500,000

Required:

Calculate the amount paid for goodwill.