American Automotive, a national chain of automotive repair shops, acquired all of the outstanding common stock of
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Question:
American Automotive, a national chain of automotive repair shops, acquired all of the outstanding common stock of Southern Parts for $598,000 in cash. The book values and the market values of Southern Parts' assets and liabilities were as follows:
Book Value/Fair Value
Current Assets
$424,000/$400,000
Property, plant, and equipment
$244,000/$356,000
Other assets
$148,000/$160,000
Current liabilities
$116,000/$114,000
Long-term liabilities
$198,000/$208,000
Calculate the amount of Goodwill that will be added to American Automotive's Balance Sheet.
Related Book For
Financial Reporting And Analysis
ISBN: 9781260247848
8th Edition
Authors: Lawrence Revsine, Daniel Collins, Bruce Johnson, Fred Mittelstaedt, Leonard Soffer
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