question archive The Balance Sheet figures for Selling Company on December 31, 2019 was as follows: Assets: Cash $ 25,000 Accounts receivable 35,000 Inventory 42,000 Property, plant, and equipment, (net) 153,000 Liabilities: Current liabilities $ 55,000 Common stock 100,000 Retained earnings 100,000 On the same date the Purchase Company acquired the assets and liabilities of the Selling Company for a purchase price of $400,000
The Balance Sheet figures for Selling Company on December 31, 2019 was as follows: Assets: Cash $ 25,000 Accounts receivable 35,000 Inventory 42,000 Property, plant, and equipment, (net) 153,000 Liabilities: Current liabilities $ 55,000 Common stock 100,000 Retained earnings 100,000 On the same date the Purchase Company acquired the assets and liabilities of the Selling Company for a purchase price of $400,000
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The Balance Sheet figures for Selling Company on December 31, 2019 was as follows:
Assets:
Cash $ 25,000
Accounts receivable 35,000
Inventory 42,000
Property, plant, and equipment, (net) 153,000
Liabilities:
Current liabilities $ 55,000
Common stock 100,000
Retained earnings 100,000
On the same date the Purchase Company acquired the assets and liabilities of the
Selling Company for a purchase price of $400,000.
On that date the fair values of the relevant assets and liabilities of Selling Company were determined as follows:
Cash $25,000
Accounts receivable $35,000
Inventory $122,000
Property, plant, and equipment, (net) $205,000
Patents $18,000
Calculate the goodwill to be recorded by the purchasing company.
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