Backstreets Co. recently acquired all of Jungleland, Inc.s net assets in a business acquisition. The cash purchase
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Backstreets Co. recently acquired all of Jungleland, Inc.’s net assets in a business acquisition. The cash purchase price was $9.7 million. Jungleland, Inc.’s assets and liabilities had the following appraised values immediately prior to the acquisition: land, $2.0 million; buildings, $3.7 million; inventory, $2.5 million; long-term notes payable, for which Backstreets Co. assumes payment responsibilities, $1.8 million.
Required:
How much goodwill will result from this transaction?
Related Book For
Accounting What the Numbers Mean
ISBN: 978-1260565492
12th edition
Authors: David Marshall, Wayne McManus, Daniel Viele
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