Backstreets Co. recently acquired all of jungle land, Inc:s net assets in a business acquisition. The cash
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Backstreets Co. recently acquired all of jungle land, Inc:s net assets in a business acquisition. The cash purchase price was $12.6 million. Jungle land. Inc.'s assets and liabilities had the following appraised values immediately prior to the acquisition: land, $2.4 million: buildings, $5.8 million; inventory. $3.4 million; long-term notes payable, for which Backstreets Co. assumes payment responsibilities. $2.5 million.
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How much goodwill will result from this transaction?
GoodwillGoodwill is an important concept and terminology in accounting which means good reputation. The word goodwill is used at various places in accounting but it is recognized only at the time of a business combination. There are generally two types of...
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Related Book For
Accounting What the Numbers Mean
ISBN: 978-1259535314
11th edition
Authors: David Marshall, Wayne McManus, Daniel Viele
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