Pooter acquired Sumter on 1/1/20. The following are items unrecorded on Sumters books. Sumter occupies its service
Fantastic news! We've Found the answer you've been seeking!
Question:
Pooter acquired Sumter on 1/1/20. The following are items unrecorded on Sumter’s books.
- Sumter occupies its service facilities under an operating lease with ten years remaining. The rent is below market levels, giving the lease an estimated fair value of $1,250,000.
- Sumter has long-term service contracts with several large auto fleet owners. The contracts have been profitable. The present value of the expected profits over the remaining term of the contracts is estimated to be $2,000,000.
- Sumter has a very skilled work force. The estimate to hire and train replacements is $1,000,000.
- Sumter has a well-known tradename among auto fleet owners and it has an estimated fair value of $500,000.
- The Pooter/Sumter operating synergies related to eliminating duplicated processes is $1,500,000.
The total amount of unrecorded intangibles that are includable as separate assets in the merger is: ???
Related Book For
Auditing a risk based approach to conducting a quality audit
ISBN: 978-1133939153
9th edition
Authors: Karla Johnstone, Audrey Gramling, Larry Rittenberg
Posted Date: