Question

During 20X4, the Evergreen Corporation entered into negotiations to buy Pine Company. During December 20X4, a final cash purchase price of $ 267,000 was agreed on. Evergreen will acquire all assets and liabilities of Pine Company, except for the existing cash balances of Pine.
The 31 December 20X4 balance sheet prepared by Pine Company is shown below in column (a), and the revised market values added later by Evergreen Corporation are shown in column (b).

.:.

Required:
1. Compute the amount of goodwill purchased by Evergreen Corporation.
2. Give the entry for Evergreen Corporation to record the purchase of Pine Company.



$1.99
Sales0
Views68
Comments0
  • CreatedFebruary 17, 2015
  • Files Included
Post your question
5000