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On September 1, 2020, Bramble Corporation acquired Marin Enterprises for a cash payment of $700,000. At...

On September 1, 2020, Bramble Corporation acquired Marin Enterprises for a cash payment of $700,000. At the time of purchase, Marin’s balance sheet showed assets of $580,000, liabilities of $250,000, and owners’ equity of $330,000. The fair value of Marin’s assets is estimated to be $750,000.

Compute the amount of goodwill acquired by  Bramble

Value assigned to goodwill ?
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Answer #1

Solution :

The value assigned to goodwill is = $ 200,000

Please find the attached screenshot of the excel sheet containing the detailed calculation for the solution.

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