A firm pays $600,000 to acquire another firm. The assets and liabilities of the acquired firm...

 

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A firm pays $600,000 to acquire another firm. The assets and liabilities of the acquired firm have a market value approximately equal to book value, except for the following: • A/R book value is $100,000, fmv is $110,000. • inventory book value is $200,000, fmv is $180,000 • patent with a book value of $10,000, fmv is $50,000 If the purchasing firm recognizes goodwill of $25,000 at the acquisition date, how much was the book value of net assets of the acquired firm? A firm pays $600,000 to acquire another firm. The assets and liabilities of the acquired firm have a market value approximately equal to book value, except for the following: • A/R book value is $100,000, fmv is $110,000. • inventory book value is $200,000, fmv is $180,000 • patent with a book value of $10,000, fmv is $50,000 If the purchasing firm recognizes goodwill of $25,000 at the acquisition date, how much was the book value of net assets of the acquired firm?

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