Johnson Corporation acquired all of the outstanding common stock
of Smith Corporation for $13,040,000 in cash....
Johnson Corporation acquired all of the outstanding common stock
of Smith Corporation for $13,040,000 in cash. The book value of
Smith’s net assets (assets minus liabilities) was $9,500,000. The
fair values of all of Smith’s assets and liabilities were equal to
their book values with the following exceptions:
Book Value
Fair Value
Receivables
$
3,000,000
$
2,630,000
Property, plant, and equipment
9,700,000
11,270,000
Intangible assets
370,000
1,540,000
Required:
Calculate the amount paid for goodwill.
On March 31, 2021, Wolfson Corporation acquired all of the
outstanding common stock of Barney Corporation...
On March 31, 2021, Wolfson Corporation acquired all of the
outstanding common stock of Barney Corporation for $18,800,000 in
cash. The book values and fair values of Barney’s assets and
liabilities were as follows: Book Value Fair Value Current assets $
7,800,000 $ 9,300,000 Property, plant, and equipment 12,800,000
15,800,000 Other assets 1,180,000 1,680,000 Current liabilities
5,800,000 5,800,000 Long-term liabilities 7,800,000 7,300,000
Required:
Calculate the amount paid for goodwill.
During the current year, Brewer
Company acquired all of the outstanding common stock of Miller Inc....
During the current year, Brewer
Company acquired all of the outstanding common stock of Miller Inc.
paying $12,000,000 cash. The book values and fair values of
Miller's assets and liabilities acquired are listed below:
Book Value
Fair Value
Accounts receivable
$1,800,000
$ 1,625,000
Inventories
2,700,000
4,000,000
Property, plant, and equipment
9,000,000
11,625,000
Accounts payable
3,000,000
3,000,000
Bonds payable
4,500,000
4,125,000
Required:
Prepare the journal entry to record the acquisition by Brewer
Company.
Beaver Corporation purchased all of the outstanding common stock
of Cole Corporation for$2,000,000 in cash.The book...
Beaver Corporation purchased all of the outstanding common stock
of Cole Corporation for$2,000,000 in cash.The book value of Cole's
net assets was$1,200,000.The fair
values of all of Cole's assets and liabilities were equal to their
book values with the following exceptions:Receivables with book
value of$400,000 but fair value of$300,000;
Property,plant and equipment with book value of$1,500,000 but fair
value of$1,800,000;Intangible assets with book value of$100,000 but
fair value of$250,000.The amount
paid for goodwill would be:
Petra Corporation purchased all of the outstanding shares of
Stuckey Corporation for $24,000,000. Stuckey’s balance sheet...
Petra Corporation purchased all of the outstanding shares of
Stuckey Corporation for $24,000,000. Stuckey’s balance sheet at the
date of acquisition is as follows:
Book Value
Fair Value
Dr (Cr)
Current assets
$ 8,000,000
$ 6,500,000
Plant assets
90,000,000
60,000,000
Current liabilities
(4,000,000)
(4,000,000)
Noncurrent liabilities
(69,000,000)
(67,000,000)
Capital stock
(2,000,000)
Retained earnings
(23,000,000)
Stuckey has previously unreported intangibles, meeting the
criteria for capitalization, with a fair value of 35,000,000.
Eliminating entry (R) on the consolidation...
On May 28, 2021, Pesky Corporation acquired all of the
outstanding common stock of Harman, Inc.,...
On May 28, 2021, Pesky Corporation acquired all of the
outstanding common stock of Harman, Inc., for $450 million. The
fair value of Harman's identifiable tangible and intangible assets
totaled $533 million, and the fair value of liabilities assumed by
Pesky was $170 million. Pesky performed a goodwill impairment test
at the end of its fiscal year ended December 31, 2021. Management
has provided the following information:
Fair value of Harman, Inc. $ 430 million
Fair value of Harman's net...
On May 28, 2018, Pesky Corporation acquired all of the
outstanding common stock of Harman, Inc.,...
On May 28, 2018, Pesky Corporation acquired all of the
outstanding common stock of Harman, Inc., for $550 million. The
fair value of Harman's identifiable tangible and intangible assets
totaled $603 million, and the fair value of liabilities assumed by
Pesky was $177 million.
Pesky performed a goodwill impairment test at the end of its fiscal
year ended December 31, 2018. Management has provided the following
information:
Fair value of Harman, Inc.
$
530
million
Fair value of Harman's net...
On May 28, 2018, Pesky Corporation acquired all of the
outstanding common stock of Harman, Inc.,...
On May 28, 2018, Pesky Corporation acquired all of the
outstanding common stock of Harman, Inc., for $580 million. The
fair value of Harman's identifiable tangible and intangible assets
totaled $624 million, and the fair value of liabilities assumed by
Pesky was $166 million. Pesky performed a goodwill impairment test
at the end of its fiscal year ended December 31, 2018. Management
has provided the following information: Fair value of Harman, Inc.
$ 560 million Fair value of Harman's net...
Parent Corporation acquired 80% of the common stock of Subs,
Inc. on January 1, 2017 for...
Parent Corporation acquired 80% of the common stock of Subs,
Inc. on January 1, 2017 for $310,000. The total book value of Subs,
Inc. stock on the date of combinations was $300,000. On the date of
combination, all assets and liabilities of Subs, Inc. had fair
values equal exceeded their book values, except that the fair value
of inventory, land, and building and equipment each exceeded their
book value by $5,000, $10,000, and $60,000 respectively. Any
remaining differential is to...
On January 1, 2017, Portland Company acquired all of Salem
Company’s voting stock for $16,000,000 in...
On January 1, 2017, Portland Company acquired all of Salem
Company’s voting stock for $16,000,000 in cash. Some of Salem’s
assets and liabilities at the date of purchase had fair values that
differed from reported values, as follows:
Book value
Fair value
Buildings and equipment, net (20 years, straight-line)
$11,000,000
$ 3,000,000
Identifiable intangibles (5 years, straight-line)
0
10,000,000
Salem’s total shareholders’ equity at January 1, 2017, was
$4,000,000. It is now December 31, 2020 (four years later). Salem’s...