On January 1, 2018, Uncle Fester Inc. acquired 100% of Morticia Corp.'s outstanding common stock by exchanging37,500 shares of Uncle Fester's $2 par value common voting stock. On January 1, 2018, Uncle Fester's votingcommon stock had a fair value of $40 per share. Morticia's voting common shares were selling for $6.50 pershare. Morticia's balances on the acquisition date, just prior to acquisition are listed below.Book Value FairValueCash $ 30,000Accounts Receivable 120,000 $ 120,000Inventory 200,000 230,000Land 230,000 290,000Building (net) 450,000 600,000Equipment (net) 175,000 160,000Accounts Payable (80,000) (80,000)Common Stock, $1 par (500,000)Paid-in Capital (350,000)Retained Earnings, 1/1/18 (275,000)Compute the value of Goodwill on the date of acquisition, 1/1/18.
On January 1, 2018, Uncle Fester Inc. acquired 100% of Morticia Corp.'s outstanding common stock by exchanging
37,500 shares of Uncle Fester's $2 par value common voting stock. On January 1, 2018, Uncle Fester's voting
common stock had a fair value of $40 per share. Morticia's voting common shares were selling for $6.50 per
share. Morticia's balances on the acquisition date, just prior to acquisition are listed below.
Book Value FairValue
Cash $ 30,000
Accounts Receivable 120,000 $ 120,000
Inventory 200,000 230,000
Land 230,000 290,000
Building (net) 450,000 600,000
Equipment (net) 175,000 160,000
Accounts Payable (80,000) (80,000)
Common Stock, $1 par (500,000)
Paid-in Capital (350,000)
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