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    Consolidation Goodwill and Building Value

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    Tosco paid $540,000 for eighty percent of the stock of Martz Co. when the book value of Martz's net assets was $600,000. For all of Martz's assets and liabilities, book value and fair market value were approximately equal.

    Using the acquisition method, what amount of goodwill should appear on a consolidated balance sheet prepared immediately after the combination?

    On January 1, 2008, Elva Corp. paid $750,000 for eighty percent of Fenton Co. when the book value of Fenton's net assets was $800,000. Fenton owned a building with a fair market value of $150,000 and a book value of $120,000.

    At what amount would the building appear on a consolidated balance sheet prepared immediately after the combination, assuming Elva used the acquisition method?

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    https://brainmass.com/business/goodwill/consolidation-goodwill-building-value-286160

    Solution Preview

    Goodwill
    Fair value of acquire: 600,000
    Net assets acquired: ...

    Solution Summary

    The solution determines what amount of goodwill should appear on a consolidated balance sheet prepared immediately after the combination.

    $2.19

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