Harrison Inc. acquired Mason Co. for $345,000 and assumed all liabilities at the date of acquisition....

 

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Harrison Inc. acquired Mason Co. for $345,000 and assumed all liabilities at the date of acquisition. Mason Co had the following balance sheet data: Assets of $390,000, liabilities of $25,000, and equity of $365,000. The Fair Market Value of the Assets were $327,000 at the date of acquisition. Required: a. Compute the amount of goodwill acquired. Goodwill b. Record the acquisition in general journal format. General Journal Debit Credit Harrison Inc. acquired Mason Co. for $345,000 and assumed all liabilities at the date of acquisition. Mason Co had the following balance sheet data: Assets of $390,000, liabilities of $25,000, and equity of $365,000. The Fair Market Value of the Assets were $327,000 at the date of acquisition. Required: a. Compute the amount of goodwill acquired. Goodwill b. Record the acquisition in general journal format. General Journal Debit Credit

Answer rating: 100% (QA)

Calculate Goodwill Fair value of total assets 327000 ... View the full answer