Question: Below is the correct answer BUT i dont understand how GOODWILL was calculated, can you please explain how that answer was acquired? On January 1,


Below is the correct answer BUT i dont understand how GOODWILL was calculated, can you please explain how that answer was acquired?

On January 1, 2017, Prestige Corporation acquired 100 percent of the voting stock of Stylene Corporation in exchange for $2,253,000 in cash and securities. On the acquisition date, Stylene had the following balance sheet: Cash Accounts receivable Inventory Equipment (net) Trademarks $ 35,800 Accounts payable $ 1,812,300 97,500 163,000 2,160,000 800,000 874,000 $ 3,486,300 Common stock 1,030,000 Retained earnings $ 3,486,300 At the acquisition date, the book values of Stylene's assets and liabilities were generally equivalent to their fair values except for the following assets Remaining Useful Life 8 years 4 years Book Value Fair Value $2,160,000 $2,280,000 186,000 Asset Equipment Customer lists Trademarks 1,030,000 1,097,000 indefinite During the next two years, Stylene has the following income and dividends in its own separately prepared financial reports to its parent. 2017 2018 Net Income Dividends $ 273,000 25,000 45,000 266,000
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