Mainline Produce Corporation acquired all the outstanding common stock of Iceberg Lettuce Corporation for $30,000,000 in cash.

Question:

Mainline Produce acquired all the outstanding of Iceberg Lettuce for $30,000,000 in cash. The book values and market values of Iceberg€™s assets and liabilities were as follows:

Mainline Produce Corporation acquired all the outstanding common stock of

Required:
Calculate the amount paid forgoodwill.

Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on... Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...