Question

On April 1, 2014, Dart Company paid $620,000 for all issued and outstanding common stock of Wall Corporation in a transaction properly accounted for under the acquisition method. Wall’s recorded assets and liabilities on April 1, 2014, follow:
Cash ................. $ 60,000
Inventory ................. 180,000
Property and equipment (net of accumulated
depreciation of $220,000) .......... 320,000
Goodwill (net of accumulated write-downs
of $50,000) ................. 100,000
Liabilities ................. (120,000)
Net assets ................. $540,000

On April 1, 2014, Wall’s inventory had a $150,000 fair value, and its property and equipment (net) had a $380,000 fair value.

Required:
What is the amount of goodwill resulting from the business combination?



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  • CreatedSeptember 10, 2014
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