On July 1, 20X0, Greenie Corporation paid $340,000 for all of Beanie Companys outstanding common stock. On
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Question:
On July 1, 20X0, Greenie Corporation paid $340,000 for all of Beanie Company's outstanding common stock. On that date, the costs and fair values of Tinsel's recorded assets and liabilities were as follows:
Cost | Fair Value | |
Cash and Receivables | $50,000 | $50,000 |
Inventory | 120,000 | 125,000 |
Buildings and Equipment (net) | 200,000 | 240,000 |
Liabilities | (100,000) | (100,000) |
Net assets | $270,000 | $315,000 |
Based on the preceding information, the differential reflected in a consolidation worksheet to prepare a consolidated balance sheet immediately after the business combination is:
$0.
$25,000.
$70,000.
$45,000.
Based on the preceding information, what amount should be allocated to goodwill in the consolidated balance sheet, prepared after this business combination?
$0
$25,000
$70,000
$45,000
Related Book For
Advanced Financial Accounting
ISBN: 978-0078025624
10th edition
Authors: Theodore E. Christensen, David M. Cottrell, Richard E. Baker
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