Intermediate Accounting
3rd Edition
ISBN: 9780136912644
Author: Elizabeth A. Gordon; Jana S. Raedy; Alexander J. Sannella
Publisher: Pearson Education (US)
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Question
Chapter 11, Problem 11.17BE
To determine
The amount of goodwill or gain from bargain purchase and the head to record it in income statement.
Given information
Book value of the assets is $7,000,000.
Amount by which assets were undervalued is $1,000,000.
Acquisition price is $12,000,000.
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Students have asked these similar questions
arizona corp. acquired the business data systems for $320,000 cash and assumed all liabilites at the data of purchase. data's books showed tangible assets of $340,000, liabilities of $19,000, and stockholders' equity of $321,000. an appraiser assessed the fair market value of the tangible assets at $310,000 at the data of acquisition.
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Chapter 11 Solutions
Intermediate Accounting
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