Othello Corporation purchases Shakespeare Inc. for $3.5 M. Shakespeare has the following assets all recorded at cost:

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Accounts Receivable $ 125,000

Inventory $ 350,000

Land $ 500,000

Building (net) $ 350,000

Equipment (net) $ 50,000

Total Assets $1,375,000

The fair value of the assets is $2,350,000 and Othello also assumes $600,000 of debt from Shakespeare.

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As Othello purchases Shakespeare, what is the value of the goodwill?

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Advanced Accounting

ISBN: 978-0077431808

10th edition

Authors: Joe Hoyle, Thomas Schaefer, Timothy Doupnik

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Posted Date: Apr 02, 2022 01:55 AM

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Othello Corporation purchases Shakespeare Inc. for $3.5 M. Shakespeare has the following assets all recorded at cost:

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