Investor A pays 1,550,000 in cash for 100% ownership of Investee B when Investee B had...
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Investor A pays 1,550,000 in cash for 100% ownership of Investee B when Investee B had a book value of 450,000. An outside appraiser set a fair value of the identifiable assets at 400,000 and the fair value of the identifiable liabilities at 150,000. A- What was the goodwill in this acquisition? B- What was the excess of FVNIA over BVA? C- Show the entry to record the acquisition on the books of Investor A. Investor A pays 1,550,000 in cash for 100% ownership of Investee B when Investee B had a book value of 450,000. An outside appraiser set a fair value of the identifiable assets at 400,000 and the fair value of the identifiable liabilities at 150,000. A- What was the goodwill in this acquisition? B- What was the excess of FVNIA over BVA? C- Show the entry to record the acquisition on the books of Investor A.
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Acquisition Analysis and Journal Entry A Goodwill Goodwill is the difference between the purchase pr... View the full answer
Related Book For
Fundamentals of Advanced Accounting
ISBN: 978-0077862237
6th edition
Authors: Joe Ben Hoyle, Thomas Schaefer, Timothy Doupnik
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