Stannis Inc plans to acquire Stark Bros. Furniture for $1.2M cash. The balance sheet before acquisition is provided below. Stark Bros. Furniture - the 'target' company Current Assets $300,000 Property, Plant and Equipment (PPE) $800,000 Total Assets $1,100,000 Liabilities $200,000 Contributed Capital $300,000 Retained earnings $600,000 Total liabilities & stockholders' equity $1,100,000 Transaction: As part of the acquisition, Stannis revalues the assets and liabilities of Stark Bros. They determine the current assets have a market value of $350,000, the PPE has a market value of $900,000, and the liabilities have a market value of $200,000. They also value a new intangible asset for "customer lists" at $100,000. 1. What is the amount of goodwill that will be created in the acquisition? Enter the number without dollar sign 2. Will Stannis need to create a non-controlling interest based on this acquisition?

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Lets analyze the acquisition of Stark Bros Furniture by Stannis Inc 1 Goodwill Based on the ... View the full answer