On January 1, 2018 Calloway Corporation acquired 80% of the outstanding voting stock of Murray Co.in exchange
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On January 1, 2018 Calloway Corporation acquired 80% of the outstanding voting stock of Murray Co.in exchange for $3,600,000 cash. At acquisition, Murray had a total book value of $2,775,000 and fair value of $4,500,000.With the exception of the patent account. which was undervalued by $1,050,000 the assets and liabilities approximated their acquisition-date fair values. At that time the patent had a remaining life of 5 years. Any remaining excess fair value is attributed to goodwill. Murray regularly sells inventory to Calloway.
Related Book For
Advanced Accounting
ISBN: 978-1259444951
13th edition
Authors: Joe Ben Hoyle, Thomas Schaefer, Timothy Doupni
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