Jackson Company acquires 100% of the stock of Clark Corporation on January 1, 2020, for $4,100 cash. As of that date Clark has the following trial balance:

	Debit				Credit
Cash	$	500
Accounts receivable		600
Inventory		900
Buildings (net) (5-year life)		1,600
Equipment (net) (2-year life)		1,000
Land		900
Accounts payable					$	400
Long-term liabilities (due 12/31/22)						1,900
Common stock						1,000
Additional paid-in capital						700
Retained earnings						1,500
Total	$	5,500			$	5,500

Net income and dividends reported by Clark for 2020 and 2021 follow:

	2020			2021
Net income	$	120		$	140
Dividends		40			50

The fair value of Clark’s net assets that differ from their book values are listed below:

	Fair Value
Buildings	$	1,200
Equipment		1,350
Land		1,300
Long-term liabilities		1,750

Any excess of consideration transferred over the fair value of net assets acquired is considered goodwill with an indefinite life.

Required

Compute the consideration transferred in excess of book value acquired on January 1, 2020.

Answer rating: 100% (QA)

Purchase Consideration 4100 Less Net Assets Acquired Book Value ... View the full answer