Consider the purchase of a supplier by Canadian Tire. 1. Suppose the fair value of the net

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Consider the purchase of a supplier by Canadian Tire.

1. Suppose the fair value of the net assets at the date of purchase (February 1,2020 ) had been \$180.3 million. What would the goodwill cost have been if Canadian Tire had paid \(\$ 200\) million?

2. Explain how Canadian Tire will have been accounting for this goodwill up to February 1, 2022.

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Financial Accounting

ISBN: 9780135433065

7th Canadian Edition

Authors: Walter Harrison, Wendy Tietz, C. Thomas, Greg Berberich, Catherine Seguin

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