Quick Shop paid $170,000 to acquire Rapid Gas, a corner store and gas station. At the time
Question:
Quick Shop paid $170,000 to acquire Rapid Gas, a corner store and gas station. At the time of the acquisition, Rapid Gas’ balance sheet reported total assets of $130,000 and liabilities of $70,000. The fair value of Rapid Gas’ assets was $100,000. The fair value of Rapid Gas’ liabilities was $70,000.
Requirements
1. How much goodwill did Quick Shop purchase as part of the acquisition of Rapid Gas?
2. Journalize Quick Shop’s acquisition of Rapid Gas.
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To determine the amount of goodwill purchased as part of the acquisition of Rapid Gas we need to cal...View the full answer
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Related Book For 
Horngrens Financial And Managerial Accounting The Financial Chapters
ISBN: 9780137858651
8th Edition
Authors: Tracie Miller Nobles, Brenda Mattison
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