Pro-tech Software acquired all of the outstanding stock of Reliable Software for $14 million. The book value of Reliable's net assets (assets minus liabilities) was $8.3 million. The fair values of Reliable's assets and liabilities equaled their book values with the exception of certain intangible assets whose fair values exceeded book values by $2.5 million. Calculate the amount paid for goodwill.
Answer to relevant QuestionsOn June 30, 2011, Kimberly Farms purchased custom-made harvesting machinery from a local producer. In payment, Kimberly signed a noninterest-bearing note requiring the payment of $60,000 in two years. The fair value of the ...Refer to the situation described in BE 10-11. Answer the questions assuming that the fair value of the machinery was $24,000, instead of $17,000.Semtech Manufacturing purchased land and building for $4 million. In addition to the purchase price, Semtech made the following expenditures in connection with the purchase of the land and building:Title insurance ...On February 1, 2011, the Xilon Corporation issued 5,000 shares of its nopar common stock in exchange for five acres of land located in the city of Monrovia. On the date of the acquisition, Xilon's common stock had a fair ...The FASB Accounting Standards Codification represents the single source of authoritative U.S. generally accepted accounting principles.Required:1. Obtain the relevant authoritative literature on nonmonetary exchanges using ...
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