GoldStar Inc. acquired all assets and assumed all liabilities of Silver Company at a cash purchase...

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GoldStar Inc. acquired all assets and assumed all liabilities of Silver Company at a cash purchase price of $784,000. The carrying value of the assets acquired was $1,040,000 and the carrying value of the liabilities acquired was $400,000. GoldStar Inc. estimated that assets were undervalued by $80,000 due to unrecorded intangibles of $60,000 (fair value) and undervalued land and equipment of $20,000 (as compared to fair value). Determine the amount of goodwill recorded by Silver Company upon purchase of GoldStar Inc. Goodwill GoldStar Inc. acquired all assets and assumed all liabilities of Silver Company at a cash purchase price of $784,000. The carrying value of the assets acquired was $1,040,000 and the carrying value of the liabilities acquired was $400,000. GoldStar Inc. estimated that assets were undervalued by $80,000 due to unrecorded intangibles of $60,000 (fair value) and undervalued land and equipment of $20,000 (as compared to fair value). Determine the amount of goodwill recorded by Silver Company upon purchase of GoldStar Inc. Goodwill

Answer rating: 100% (QA)

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