Arcadia, Incorporated, acquired 100 percent of the voting shares of Bruno Company on January 1, 2023. Im $461,000 in cash and issued 100,000 shares of its own $1 par value common stock. On this date, Arcadia's per share. The combination is a statutory merger with Bruno subsequently dissolved as a legal corporation liabilities are assigned to a new reporting unit. The following shows fair values for the Bruno reporting unit for January 1, 2023, along with respective car 31, 2024. Bruno Reporting Unit Cash Receivables Inventory Patents Royalty agreements. Equipment (net) Goodwill Accounts payable Long-term liabilities Note: Parentheses indicate a credit balance. Fair Values 1/1/23 $ 89,000 189,750 218,750 776,500 586,000 355,000 ? (114,500) (591,500) Required: a. Calculate the goodwill recognized in the combination. Carrying Amounts $ 48,000 243,000 12/31/24 258,000 860,000 546,000 269,000 452,000 (184,000) (518,000)

Arcadia, Incorporated, acquired 100 percent of the voting shares of Bruno Company on January 1, 2023. Im $461,000 in cash and issued 100,000 shares of its own $1 par value common stock. On this date, Arcadia's per share. The combination is a statutory merger with Bruno subsequently dissolved as a legal corporation liabilities are assigned to a new reporting unit. The following shows fair values for the Bruno reporting unit for January 1, 2023, along with respective car 31, 2024. Bruno Reporting Unit Cash Receivables Inventory Patents Royalty agreements. Equipment (net) Goodwill Accounts payable Long-term liabilities Note: Parentheses indicate a credit balance. Fair Values 1/1/23 $ 89,000 189,750 218,750 776,500 586,000 355,000 ? (114,500) (591,500) Required: a. Calculate the goodwill recognized in the combination. Carrying Amounts $ 48,000 243,000 12/31/24 258,000 860,000 546,000 269,000 452,000 (184,000) (518,000)

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter12: Intangibles

Section: Chapter Questions

Problem 18E

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