Question: the first picture was a mistake. i need the second picture question answered Paul Moss, owner of Moss Interiors, is negotiating for the purchase of

 the first picture was a mistake. i need the second picture
question answered Paul Moss, owner of Moss Interiors, is negotiating for the
the first picture was a mistake. i need the second picture question answered
purchase of Crane Galleries. The balance sheet of Crane is given in

Paul Moss, owner of Moss Interiors, is negotiating for the purchase of Crane Galleries. The balance sheet of Crane is given in an abbreviated form below. Assets Cash Land Buildings (net) Equipment (net Copyrights (net) Total assets $112.000 70.700 200,700 175,700 30,700 $589,800 Crane Gallaries Balance Sheet As of December 31, 2020 Liabilities and Stockholders' Equity Accounts payable Notes payable (long-term) Total liabilities Common stock Retained carnings Total liabilities and stockholders equity $50.300 299,800 350.100 $201.400 38,300 239.700 $589,800 Moss and Crane agree that: 1 2 Land is undervalued by $30,000 Equipment is overvalued by $5,000. On July 31, 2020, Cullumber Company paid $2,850,000 to acquire all of the common stock of Conchita Incorporated, which became a division (a reporting unit) of Cullumber.Conchita reported the following balance sheet at the time of the acquisition Current assets $740,000 Curkent liabilities $570,000 Noncurrent assets 2.550,000 Long-term liabilities 470,000 Total assets $3.290,000 Stockholders' equity 2.250,000 Total liabilities and stockholders' equity $3.290,000 It was determined at the date of the purchase that the fair value of the identifiable net assets of Conchita was $2,590,000. Over the next 6 months of operations, the newly purchased division experienced operating losses. In addition, it now appears that it will generate substantial losses for the foreseeable future. At December 31, 2020, Conchita reports the following balance sheet information Current assets $420,000 Noncurrent assets including goodwill recognized in purchase) 2,310,000 Current liabilities (660,000 Long-term liabilities (460,000) Net assets $1,610,000 Compute the amount of goodwill recognized, if any, on July 31, 2020. (If answer is zero, do not leave answer field blank. Entero the amount.) The amount of goodwill

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!