Columbia recently acquired all of Mercury's net assets in a business acquisition. The cash purchase price was $22,000,000. Mercury's assests and liabilites had the following costs and appraised values: Current assets Land, building and equipment Current liabilites Mortgage payable How much goodwill will rewult from this transaction? Cost Appraised Value Basis $ 6,000,000 $ 6,000,000 $ 14,000,000 $23,000,000 $4,000,000 $4,000,000 $ 10,000,000 $10,000,000

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Columbia recently acquired all of Mercury's net assets in a business acquisition. The cash purchase price was
$22,000,000. Mercury's assests and liabilites had the following costs and appraised values:
Current assets
Land, building and equipment
Current liabilites
Mortgage payable
How much goodwill will rewult from this transaction?
Cost
Basis
$ 6,000,000
$ 14,000,000
Appraised
Value
$ 6,000,000
$23,000,000
$4,000,000 $4,000,000
$ 10,000,000 $10,000,000
Transcribed Image Text:Columbia recently acquired all of Mercury's net assets in a business acquisition. The cash purchase price was $22,000,000. Mercury's assests and liabilites had the following costs and appraised values: Current assets Land, building and equipment Current liabilites Mortgage payable How much goodwill will rewult from this transaction? Cost Basis $ 6,000,000 $ 14,000,000 Appraised Value $ 6,000,000 $23,000,000 $4,000,000 $4,000,000 $ 10,000,000 $10,000,000
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