PBJ, Inc. acquired 100% of the outstanding common stock of BLT Corp. for $5,600,000. The purchase...

 

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PBJ, Inc. acquired 100% of the outstanding common stock of BLT Corp. for $5,600,000. The purchase price included $400,000 to reimburse the former shareholders of BLT for legal fees incurred to complete the acquisition. The company also agreed to pay the seller an additional $2,000,000 if BLT generated $6,000,000 in net income during the first 3 years after the business combination. At the acquisition date, the fair value of the contingent consideration was $750,000. For each of the acquisition items, enter the amount (Book Value or Fair Value) that should be reflected in the line item (Profit or Loss, OCI, Total Assets, or Total Liabilities) on PBJ's consolidated financial statements as of the acquisition date. Enter debit balances as positive values and credit balances as negative values. The appropriate dollar value (BV or FV) for each row should be entered into one blank at most. So, for each row, you will select the appropriate value (BV or FV) if any and enter it into one blank on the same row. Enter zero for each of the remaining blanks in that row. If an acquisition item is not included in any consolidated balance, enter zeros in every blank for that row. Use commas as appropriate. Use whole numbers (i.e. no need for decimals). Do not use dollar signs. You may use parentheses or a negative sign before the number to indicate credit balances. Total Other Book Value at Fair Value at Assets, Total Acquisition Item Profit or Loss Comprehensive Acquisition Date Acquisition Date Excluding Liabilities Income Goodwill PP&E, net 4,000,000 4,200,000 In-process R&D 1,320,000 Legal fees 400,000 400,000| Noncompete agreement with former owners 550,000 Bonds payable 475,000 450,000 Estimated post-acquisition restructuring costs 365,000 Contingent consideration 750,000| Enter the amount of goodwill that should be recorded as of the acquisition date as a positive number in the following blank: PBJ, Inc. acquired 100% of the outstanding common stock of BLT Corp. for $5,600,000. The purchase price included $400,000 to reimburse the former shareholders of BLT for legal fees incurred to complete the acquisition. The company also agreed to pay the seller an additional $2,000,000 if BLT generated $6,000,000 in net income during the first 3 years after the business combination. At the acquisition date, the fair value of the contingent consideration was $750,000. For each of the acquisition items, enter the amount (Book Value or Fair Value) that should be reflected in the line item (Profit or Loss, OCI, Total Assets, or Total Liabilities) on PBJ's consolidated financial statements as of the acquisition date. Enter debit balances as positive values and credit balances as negative values. The appropriate dollar value (BV or FV) for each row should be entered into one blank at most. So, for each row, you will select the appropriate value (BV or FV) if any and enter it into one blank on the same row. Enter zero for each of the remaining blanks in that row. If an acquisition item is not included in any consolidated balance, enter zeros in every blank for that row. Use commas as appropriate. Use whole numbers (i.e. no need for decimals). Do not use dollar signs. You may use parentheses or a negative sign before the number to indicate credit balances. Total Other Book Value at Fair Value at Assets, Total Acquisition Item Profit or Loss Comprehensive Acquisition Date Acquisition Date Excluding Liabilities Income Goodwill PP&E, net 4,000,000 4,200,000 In-process R&D 1,320,000 Legal fees 400,000 400,000| Noncompete agreement with former owners 550,000 Bonds payable 475,000 450,000 Estimated post-acquisition restructuring costs 365,000 Contingent consideration 750,000| Enter the amount of goodwill that should be recorded as of the acquisition date as a positive number in the following blank:

Answer rating: 100% (QA)

Goodwill is 330000 Refer the explanation below The date of purchase is The acquirees assets and liabilities are valued at their fair market value The ... View the full answer