ACME Co. paid $110,000 for the net assets of Comb Corp. At the time of the acquisition the following information was available related to Comb's balance sheet: Book Value Fair Value Current Assets $50,000 $ 50,000 Building 80,000 100,000 Equipment 40,000 50,000 Liabilities 30,000 30,000 What is the amount of goodwill or gain related to the acquisition? a. Goodwill of $60,000 b. Goodwill of $30,000 c. A gain of $30,000 d. A gain of $60,000
ACME Co. paid $110,000 for the net assets of Comb Corp. At the time of the acquisition the following information was available related to Comb's balance sheet: Book Value Fair Value Current Assets $50,000 $ 50,000 Building 80,000 100,000 Equipment 40,000 50,000 Liabilities 30,000 30,000 What is the amount of goodwill or gain related to the acquisition? a. Goodwill of $60,000 b. Goodwill of $30,000 c. A gain of $30,000 d. A gain of $60,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
ACME Co. paid $110,000 for the net assets of Comb Corp. At the time of the acquisition the following information was available related to Comb's balance sheet:
|
|
Book Value |
Fair Value |
|
Current Assets |
$50,000 |
$ 50,000 |
|
Building |
80,000 |
100,000 |
|
Equipment |
40,000 |
50,000 |
|
Liabilities |
30,000 |
30,000 |
What is the amount of
|
a. |
Goodwill of $60,000 |
|
b. |
Goodwill of $30,000 |
|
c. |
A gain of $30,000 |
|
d. |
A gain of $60,000 |
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