On September 1, 2020, Cheyenne Corporation acquired Sage Hill Enterprises for a cash payment of $770,000. At the time of purchase, Sage Hill’s balance sheet showed assets of $560,000, liabilities of $180,000, and owners’ equity of $380,000. The fair value of Sage Hill’s assets is estimated to be $830,000.

Compute the amount of goodwill acquired by Cheyenne.

Value assigned to goodwill

Answer rating: 100% (QA)

Answer Fair Value of net assets purchased 830000 ... View the full answer