Northern purchased all of Southern's business, including all of its assets and liabilities, for $652,750.

 Information related to the two companies is shown below: 

                                                      Northern           Southern 

1. 
   
2. Fair value of assets                 $1,057,000           $796,000 
3. 
   
4. Fair value of liabilities             575,000                 306,000 
5. 
   
6. Assets reported                         819,000                 630,000 
7. 
   
8. Liabilities reported                      484,000                 257,000 
9. 
   
10. Net income for the year               56,000                    60,000 

What trade value did Northern pay to acquire Southern?

Answer rating: 100% (QA)

To determine the trade value that Northern paid to acquire Southern we need to calculate the dif... View the full answer