Ask Question
3 April, 07:07

Book Value Fair Value Assets $ 400,000 $ 500,000 Liabilities 45,000 45,000 Net income 25,000 How much goodwill would be recorded if Torretta Holdings purchases Vikings, assuming its liabilities, for $635,000?

+1
Answers (1)
  1. 3 April, 08:34
    0
    goodwill to be record = $180000

    Explanation:

    given data

    Book Value Fair Value

    Assets $400,000 $500,000

    Liabilities 45,000 45,000

    Net income = 25,000

    solution

    first we get here net assets that is express as

    net assets = fair value of assets - liability taken ... 1

    net assets = $500000 - $45000

    net assets = $455000

    so now we get here goodwill that is

    goodwill = purchase consideration - net assets ... 2

    put here value

    goodwill = $635000 - $455000

    goodwill = $180000
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “Book Value Fair Value Assets $ 400,000 $ 500,000 Liabilities 45,000 45,000 Net income 25,000 How much goodwill would be recorded if ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers