FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Our Corporation purchased all of the outstanding stock of
Their Corporation, paying $700,000 cash. Our
Corporation assumed all of the liabilities. Fair values of
the acquired assets and liabilities were:
Fair Values:
Current assets (net) $150,000
Property, Plant & Equipment (net) 450,000
Liabilities 450,000
What is Goodwill?
What is the journal entry to record the transaction? Show
all work.
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Transcribed Image Text:Our Corporation purchased all of the outstanding stock of Their Corporation, paying $700,000 cash. Our Corporation assumed all of the liabilities. Fair values of the acquired assets and liabilities were: Fair Values: Current assets (net) $150,000 Property, Plant & Equipment (net) 450,000 Liabilities 450,000 What is Goodwill? What is the journal entry to record the transaction? Show all work.
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