Company A purchased Company B for $156 cash. At the time of purchase, Company B had the following information available regarding assets and liabilities: Book Value Fair Value Current Assets $63 $55 Long-Term Assets $100 $101 Current Liabilities $37 $37 Long-Term Liabilities $48 $46 What amount of goodwill should Company A record?
Company A purchased Company B for $156 cash. At the time of purchase, Company B had the following information available regarding assets and liabilities: Book Value Fair Value Current Assets $63 $55 Long-Term Assets $100 $101 Current Liabilities $37 $37 Long-Term Liabilities $48 $46 What amount of goodwill should Company A record?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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formula for goodwil help
Transcribed Image Text:Company A purchased Company B for $156 cash. At the time of
purchase, Company B had the following information available regarding
assets and liabilities:
Book Value
Fair Value
Current Assets
$63
$55
Long-Term Assets
$100
$101
Current Liabilities
$37
$37
Long-Term Liabilities
$48
$46
What amount of goodwill should Company A record?
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