On April 30, 2017, Pound Corp. acquired for cash all 200,000 shares of the outstanding common stock of Shake Corp. for $22 per share. At April 30, 2017, Shake’s balance sheet showed net assets with a $3,000,000 book value. On that date, the fair value of Shake’s property, plant, and equipment exceeded book value by $300,000.

Required:

What amount should Pound report as goodwill on its April 30, 2017, consolidated balance sheet?

Answer rating: 100% (QA)

Purchase price 200000 shares 20 4000000 Book value of ... View the full answer