ABC Corp. acquired all the assets and liabilities of XYZ Corporation by issuing shares of its common stock. On January 1, 2020, partial balance sheet data for the companies prior to the business combination and immediately following the combination is provided.     ABC Corp. XYZ Corp. Combination Cash 65,000 25,000 90,000 Accounts receivable 72,000 20,000 94,000 Inventory 33,000 45,000 88,000 PPE (net) 400,000 150,000 650,000 Goodwill     ? Total Assets 570,000 240,000 ?         Accounts payable 50,000 25,000 75,000 Bonds payable 250,000 100,000 350,000 Common stock, P2 par 100,000 25,000 160,000 Share Premium 65,000 20,000 245,000 Retained earnings 105,000 70,000 ? Total Liab and Equity 570,000 240,000 ?   What amount of goodwill be reported by the combined entity immediately following the combination? Group of answer choices 125,000 413,000 13,000 173,000

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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ABC Corp. acquired all the assets and liabilities of XYZ Corporation by issuing shares of its common stock. On January 1, 2020, partial balance sheet data for the companies prior to the business combination and immediately following the combination is provided.

 

 

ABC Corp.

XYZ Corp.

Combination

Cash

65,000

25,000

90,000

Accounts receivable

72,000

20,000

94,000

Inventory

33,000

45,000

88,000

PPE (net)

400,000

150,000

650,000

Goodwill

 

 

?

Total Assets

570,000

240,000

?

 

 

 

 

Accounts payable

50,000

25,000

75,000

Bonds payable

250,000

100,000

350,000

Common stock, P2 par

100,000

25,000

160,000

Share Premium

65,000

20,000

245,000

Retained earnings

105,000

70,000

?

Total Liab and Equity

570,000

240,000

?

 

What amount of goodwill be reported by the combined entity immediately following the combination?

Group of answer choices
125,000
413,000
13,000
173,000
 
 
 
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