Annapolis Company was recently sold for $450,000. Annapolis had assets & liabilities appraised at the time of
Question:
Annapolis Company was recently sold for $450,000. Annapolis had assets & liabilities appraised at the time of the sale in the amounts of:
Item Amount
Accounts Receivable assumed by buyer $135,000
Inventory $260,000
Property, Plant & Equipment (net) $530,000
Notes Payable assumed by buyer $645,000
How much should be recorded as Goodwill for this transaction?
Accounting Principles
ISBN: 978-1119048473
7th Canadian Edition Volume 2
Authors: Jerry J. Weygandt, Donald E. Kieso, Paul D. Kimmel, Barbara Trenholm, Valerie Warren, Lori Novak