On April 1, 20X1, Paape Company paid $950,000 for all the issued and outstanding stock of Simon Corporation The recorded assets and liabilities of the Simon Corporation on April 1, 20X1, follow Cash $ 80,000 Inventory 240,000 Property and equipment (net of accumulated depreciation of $320,000) 480,...

Computation of Good Will Cash 80000 In ...

On April 1, 20X1, Paape Company paid $950,000 for all the issued and outstanding stock of Simon

Question:

On April 1, 20X1, Paape Company paid $950,000 for all the issued and outstanding stock of Simon The recorded assets and liabilities of the Simon on April 1, 20X1, follow:
Cash .......................................... $ 80,000
Inventory ..................................... 240,000
Property and equipment (net of accumulated depreciation of $320,000) .......480, 000
Liabilities ...............................(180,000)
On April 1, 20X1, it was determined that the inventory of Simon had a fair value of $190,000, and the property and equipment (net) had a fair value of $560,000. What is the amount of resulting from the business combination? (Points: 10)
$0$120,000$300,000$230,000

Goodwill
Goodwill is an important concept and terminology in accounting which means good reputation. The word goodwill is used at various places in accounting but it is recognized only at the time of a business combination. There are generally two types of... Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...