Martinez Corporation purchased all of the outstanding stock of ABC Inc., paying $ 2,700,000 cash. Martinez assumed all of the liabilities of ABC. Book values and fair values of acquired assets and liabilities were:

Current Assets (net)Book Value 420,000Fair Value450,000

Property, Plant, & Equipment (net)Book Value 1,600,000Fair Value 2,250,000

Liabilities Book Value 500,000Fair Value 600,000

Martinez would record Goodwill of what amount?

Answer rating: 100% (QA)

To calculate the goodwill we need to subtract the fair value o... View the full answer