On April 30, 2017, Pound Corp acquired for cash all 200,000 shares of the outstanding common stock of Shake Corp for $20 per share At April 30, 2017, Shake 's balance sheet showed net assets with a $3,000,000 book value On that date, the fair value of Shake 's property, plant, and equipment exceede...

Acquisition cost of Shakes stock 4000000 20 ...

On April 30, 2017, Pound Corp. acquired for cash all 200,000 shares of the outstanding common stock

Question:

On April 30, 2017, Pound Corp. acquired for cash all 200,000 shares of the outstanding of Shake Corp. for $20 per share. At April 30, 2017, Shake's showed net assets with a $3,000,000 book value. On that date, the fair value of Shake's property, plant, and equipment exceeded book value by $300,000.
Required:
What amount should Pound report as on its April 30, 2017, consolidated 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... Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on... Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...