question archive Question 6 Not yet answered Marked out of 1,00 p Flag question if you know that Cyprus Company acquired 90 percent of the outstanding shares of Star Company by paying $400,000 in cash
Question 6 Not yet answered Marked out of 1,00 p Flag question if you know that Cyprus Company acquired 90 percent of the outstanding shares of Star Company by paying $400,000 in cash
Subject:AccountingPrice:2.84 Bought3
Question 6 Not yet answered Marked out of 1,00 p Flag question if you know that Cyprus Company acquired 90 percent of the outstanding shares of Star Company by paying $400,000 in cash. The fair value of star identifiable assets is $320,000, and the abilities is $40,000. Determine the amount of goodl will/ gain on bargain purchase A BI EE OP ?
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Statement Showing the Amount of Goodwill
| Description | Amount | Amount |
| Purchase Consideration | 400000 | |
| Less: Net Assets | ||
| Assets | 320000 | |
| Less: Liabilities | 40000 | 280000 |
| Goodwill | 120000 | |
Answer - Value of Goodwill = $ 120000
Note
Goodwill = If purchase consideration is greater than net assets.
Gain on Purchase Burgain = If purchase consideration is lesser than net assets.
