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    Calculating goodwill assets

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    Acme Corporation is buying all the assets and assuming all the liabilities of Stark Inc. The following information is available for Stark Inc. at the date of the purchase:

    Accounts Receivable 300,000
    Inventory 100,000
    Equipment 200,000
    Accumulated Depreciation 80,000
    Land 300,000

    Accounts payable 40,000
    Wages Payable 10,000
    Note Payable 100,000
    Common Stock 300,000
    Retained Earnings 270,000

    The inventory is worth $60,000, the land is worth $400,000 and the equipment is worth $300,000. Everything else is worth its book value. Acme Corporation will pay $1,000,000 for Stark Inc. How much of the purchase price will Acme Corporation debit to goodwill?

    © BrainMass Inc. brainmass.com December 24, 2021, 11:55 pm ad1c9bdddf
    https://brainmass.com/business/accounting/calculating-goodwill-assets-619977

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    Accounts Receivable 300,000
    Inventory 60,000
    Equipment 300,000
    Land 400,000

    Accounts Payable 40,000
    Wages Payable 10,000
    Note Payable 100,000
    Cash 1,000,000

    Goodwill 90,000

    Acme Corporation will debit 90,000 to goodwill.

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    © BrainMass Inc. brainmass.com December 24, 2021, 11:55 pm ad1c9bdddf>
    https://brainmass.com/business/accounting/calculating-goodwill-assets-619977

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