Intermediate Accounting (2nd Edition)
2nd Edition
ISBN: 9780134730370
Author: Elizabeth A. Gordon, Jana S. Raedy, Alexander J. Sannella
Publisher: PEARSON
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Question
Chapter 11, Problem 11.25E
a.
To determine
Amount of goodwill to be recorded on the date of acquisition.
Given Information:
Cost of acquisition for the company’s voting common stock is $5,000,000.
Appraised value of net asset is $1,400,000 more than the book value.
Book value of the assets is 5,574,900.
Liabilities amounted to $4,324,900.
b.
To determine
The way goodwill is accounted after the date of acquisition.
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Chapter 11 Solutions
Intermediate Accounting (2nd Edition)
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