On August 31, 2021, Greenwater Inc. purchased the net assets of Blue Moon Corporation for $575,000. The balance sheet for Blue Moon Corporation on August 31, 2021 provided the following information: Assets Liabilities Cash $42,450 Accounts payable $39,205 Accounts receivable $27,260 Unearned revenue $8,900 Land $98,300 Shareholders’ equity Building (at cost) $365,000 Common shares $25,100 Accumulated depreciation, building ($98,625) 

Retained earnings $361,180 $434,385 $434,385 The fair values of Blue Moon Corporation’s assets and liabilities on August 31, 2021 are as follows: Cash $42,450 Accounts receivable $25,900 Land $122,400 Building $375,550 Accounts payable $39,205 Unearned revenue $8,900 Greenwater Inc. follows ASPE. 

Required: 

Calculate the amount of goodwill that should be recorded by Greenwater.

Answer rating: 100% (QA)

calculation of Goodwill or capital reserve on purchase of Bl... View the full answer