19-Lake Incorporated purchased all of the
outstanding stock of Huron Company paying $960,000 cash. Lake
assumed...
19-Lake Incorporated purchased all of the
outstanding stock of Huron Company paying $960,000 cash. Lake
assumed all of the liabilities of Huron. Book values and fair
values of acquired assets and liabilities were:
Book Value
Fair Value
Current assets (net)
$
130,700
$
124,400
Property, plant, equip. (net)
612,000
760,000
Liabilities
150,400
177,000
Lake would record goodwill of:
Multiple Choice
$367,700.
$252,600.
$75,600.
$0.
20-An exclusive 20-year right to manufacture a
product or use a process is a:
Multiple Choice...
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:
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.
Consolidation Problem
On January 1 2020, Starbucks acquired 100% of Dunkin’s
outstanding common stock for $1,000,000...
Consolidation Problem
On January 1 2020, Starbucks acquired 100% of Dunkin’s
outstanding common stock for $1,000,000 in cash. As of January 1
2020, the following fair values where determined.
Dunkin’s Buildings had a FV in excess of BV of
$150,000
Dunkin’s Equipment had a FV in excess of BV of
$40,000
Dunkin had an unrecorded patent with a FMV of
$10,000
For all other Dunkin Accounts as of Jan 1, 2020, all
other GAAP book values equaled fair values.
Here...
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...
Mainline Produce Corporation acquired all the outstanding common
stock of Iceberg Lettuce Corporation for $38,000,000 in...
Mainline Produce Corporation acquired all the outstanding common
stock of Iceberg Lettuce Corporation for $38,000,000 in cash. The
book values and fair values of Iceberg’s assets and liabilities
were as follows:
Book Value
Fair Value
Current assets
$
11,000,000
$
14,000,000
Property, plant, and equipment
30,000,000
36,000,000
Other assets
3,000,000
4,000,000
Current liabilities
7,400,000
7,400,000
Long-term liabilities
12,600,000
11,600,000
Required:
Calculate the amount paid for goodwill.
Pham Company acquired the assets (except for cash) and assumed
the liabilities of Senn Company on...
Pham Company acquired the assets (except for cash) and assumed
the liabilities of Senn Company on January 1, 2019, paying $720,000
cash. Senn Company's December 31, 2018, balance sheet, reflecting
both book values and fair values, showed:
Book Value
Fair Value
Accounts receivable (net)
$ 72,000
$ 65,000
Inventory
86,000
99,000
Land
110,000
162,000
Buildings (net)
369,000
450,000
Equipment (net)
237,000
288,000
Total
$874,000
$1,064,000
Accounts payable
$ 83,000
$ 83,000
Note payable
180,000
180,000
Common stock, $2 par value...
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.