Shaw Company has the following account balances: Receivables Inventory Land Building-net Liabilities Common stock Additional paid-in...

 

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Shaw Company has the following account balances: Receivables Inventory Land Building-net Liabilities Common stock Additional paid-in capital Retained earnings $ 100,000 150,000 100,000 250,000 100,000 100,000 150,000 250,000 Shaw's Land has a fair value of $200,000, while its Building has a fair value of $300,000. Shaw's Liabilities have a fair value of $75,000. Brooks Company obtains all of the outstanding shares of Shaw for $750,000 cash. In the financial statements prepared immediately after the business combination, what is the amount of Goodwill using the purchase method? Shaw Company has the following account balances: Receivables Inventory Land Building-net Liabilities Common stock Additional paid-in capital Retained earnings $ 100,000 150,000 100,000 250,000 100,000 100,000 150,000 250,000 Shaw's Land has a fair value of $200,000, while its Building has a fair value of $300,000. Shaw's Liabilities have a fair value of $75,000. Brooks Company obtains all of the outstanding shares of Shaw for $750,000 cash. In the financial statements prepared immediately after the business combination, what is the amount of Goodwill using the purchase method?

Answer rating: 100% (QA)

To calculate the amount of Goodwill using the purchase method we need to determine the f... View the full answer