Benjamin Inc. and Victor Inc. agreed to combine as of January 1, 2023. The book value and fair value of Victor's accounts on that date (prior to creating the combination) follow,along with the book value of Benjamin's accounts:Current assetsBuilding and equipment (net)LiabilitiesCommon StockAdditional paid-in capitalRetained earnings, 1/1/2023O $200,000.BenjaminBookValue$50,000.O $70,000.O $90,000.VictorBookValue$420,000 $170,000 $230,000790,000 410.000 480,000620,000 380,000 380,000400,000 90,000Victor FairValue70,000 30,000120,00080,000Assume that Benjamin issued 10,000 shares of common stock with a $5 par value and a $40 fair value to obtain all of Victor's outstanding stock. In addition, Benjamin paid legalcosts of $8,000 in connection with the acquisition and $4,000 in stock issue costs, which is not yet reflected in the information above.On its acquisition-date consolidated balance sheet, what amount should Beaver report as goodwill?

Benjamin Inc. and Victor Inc. agreed to combine as of January 1, 2023. The book value and fair value of Victor's accounts on that date (prior to creating the combination) follow, along with the book value of Benjamin's accounts: Current assets Building and equipment (net) Liabilities Common Stock Additional paid-in capital Retained earnings, 1/1/2023 Benjamin Book Value O $200,000. O $50,000. O $70,000. O $90,000. Victor Book Value $420,000 $170,000 $230,000 790,000 410,000 480,000 620,000 380,000 400,000 90,000 70,000 30,000 120,000 Victor Fair Value 80,000 380,000 Assume that Benjamin issued 10,000 shares of common stock with a $5 par value and a $40 fair value to obtain all of Victor's outstanding stock. In addition, Benjamin paid legal costs of $8,000 in connection with the acquisition and $4,000 in stock issue costs, which is not yet reflected in the information above. On its acquisition-date consolidated balance sheet, what amount should Beaver report as goodwill?

Benjamin Inc. and Victor Inc. agreed to combine as of January 1, 2023. The book value and fair value of Victor's accounts on that date (prior to creating the combination) follow, along with the book value of Benjamin's accounts: Current assets Building and equipment (net) Liabilities Common Stock Additional paid-in capital Retained earnings, 1/1/2023 Benjamin Book Value O $200,000. O $50,000. O $70,000. O $90,000. Victor Book Value $420,000 $170,000 $230,000 790,000 410,000 480,000 620,000 380,000 400,000 90,000 70,000 30,000 120,000 Victor Fair Value 80,000 380,000 Assume that Benjamin issued 10,000 shares of common stock with a $5 par value and a $40 fair value to obtain all of Victor's outstanding stock. In addition, Benjamin paid legal costs of $8,000 in connection with the acquisition and $4,000 in stock issue costs, which is not yet reflected in the information above. On its acquisition-date consolidated balance sheet, what amount should Beaver report as goodwill?

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

ChapterA2: Investments

Section: Chapter Questions

Problem 25E

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