Bramble Company's December 31, 2021 balance sheet reports assets of $13202000 and liabilities of $4286000. The book values of Bramble's assets approximate their fair values, except for land, which has a fair value $608000 greater than its book value. On December 31, 2021, Indigo Corporation paid $11781000 to acquire Bramble. What amount of goodwill should Indigo record as a result of this purchase? O $1649000 O $0 O $2865000 O $2257000

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Bramble Company's December 31, 2021 balance sheet reports assets of $13202000 and liabilities of $4286000. The book values of
Bramble's assets approximate their fair values, except for land, which has a fair value $608000 greater than its book value. On
December 31, 2021, Indigo Corporation paid $11781000 to acquire Bramble. What amount of goodwill should Indigo record as a
result of this purchase?
O $1649000
O $0
O $2865000
O $2257000
Transcribed Image Text:Bramble Company's December 31, 2021 balance sheet reports assets of $13202000 and liabilities of $4286000. The book values of Bramble's assets approximate their fair values, except for land, which has a fair value $608000 greater than its book value. On December 31, 2021, Indigo Corporation paid $11781000 to acquire Bramble. What amount of goodwill should Indigo record as a result of this purchase? O $1649000 O $0 O $2865000 O $2257000
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