Question

Annapolis Company was recently sold for $490,000. Annapolis had assets & liabilities appraised at the time...

Annapolis Company was recently sold for $490,000. Annapolis had assets & liabilities appraised at the time of the sale in the amounts of:

Item   Amount

Accounts Receivable assumed by buyer $108,000

Inventory $295,000

Property, Plant & Equipment (net) $535,000

Notes Payable assumed by buyer $685,000

Using this information, how much should be recorded as Goodwill for this transaction?

Business   Accounting   
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Homework Answers

Answer #1
Amount($) Amount($)
Sales Price of Annapolis Company       4,90,000
Net Assets over Liabilities:
Accounts Receivable            1,08,000
Inventory            2,95,000
Property, Plant & Equipment (net)            5,35,000
Notes Payable           -6,85,000       2,53,000
Goodwill (490,000-253,000)       2,37,000
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