Consolidated Goodwill
Not what you're looking for?
On January 1, 2004, Mitchell Company has a net book value of $1,500,000 as follows:
1,000 shares of preferred stock; par value $100 per share, cumulative, non participative, non-voting, call value $108 per share........................................................................$100,000
20,000 shares of common stock, par value $40 per share....$800,000
Retained earnings................................................... ...$600,000
Total............................................................... ......$1,500,000
Andrews Company acquires all of the outstanding preferred shares for $106,000 and 60 percent of the common stock for $916,400. Andrews believed that one of Mitchell's buildings, with a 12-year
life, was undervalued on the company's financial records by $50,000.
What amount of consolidated goodwill would be recognized from this purchase?
Purchase this Solution
Solution Summary
Consolidated goodwill is calculated.
Solution Preview
The amount of goodwill would be:
Excess cost of preferred ...
Purchase this Solution
Free BrainMass Quizzes
Basics of corporate finance
These questions will test you on your knowledge of finance.
Accounting: Statement of Cash flows
This quiz tests your knowledge of the components of the statements of cash flows and the methods used to determine cash flows.
Motivation
This tests some key elements of major motivation theories.
Income Streams
In our ever changing world, developing secondary income streams is becoming more important. This quiz provides a brief overview of income sources.
Change and Resistance within Organizations
This quiz intended to help students understand change and resistance in organizations