Mainline Produce Corporation acquired all the outstanding common stock of Iceberg Lettuce Corporation for $33,000,000 in cash. The book values and fair values of Iceberg's assets and liabilities were as follows: Book Value $ 12,800, 000 26, 800, e00 4, 400, 000 8, 800, 000 16, 200, 000 Fair Value $ 15, 800, 000 32, 800, e00 5, 400, 000 8, 800, 000 15, 200, 000 Current assets Property, plant, and equipment Other assets Current liabilities Long-term liabilities Required: Calculate the amount paid for goodwilI. (Enter your answer in millions (i.e. 5,000,000 should be entered as 5).) Amount paid for goodwill million
Mainline Produce Corporation acquired all the outstanding common stock of Iceberg Lettuce Corporation for $33,000,000 in cash. The book values and fair values of Iceberg's assets and liabilities were as follows: Book Value $ 12,800, 000 26, 800, e00 4, 400, 000 8, 800, 000 16, 200, 000 Fair Value $ 15, 800, 000 32, 800, e00 5, 400, 000 8, 800, 000 15, 200, 000 Current assets Property, plant, and equipment Other assets Current liabilities Long-term liabilities Required: Calculate the amount paid for goodwilI. (Enter your answer in millions (i.e. 5,000,000 should be entered as 5).) Amount paid for goodwill million
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
Chapter13: Investments And Long-term Receivables
Section: Chapter Questions
Problem 8MC
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Transcribed Image Text:Mainline Produce Corporation acquired all the outstanding common stock of Iceberg Lettuce Corporation for $33,000,000 in cash.
The book values and fair values of Iceberg's assets and liabilities were as follows:
Fair Value
$ 15,800, 000
32, 800, еее
5, 400, 000
8, 800, 000
15, 200, e00
Book Value
$ 12, 800, 000
26, 800, 000
4,400, в00
8, 800, 000
16, 200, 000
Current assets
Property, plant, and equipment
Other assets
Current liabilities
Long-term liabilities
Required:
Calculate the amount paid for goodwill. (Enter your answer in millions (i.e. 5,000,000 should be entered as 5).)
Amount paid for goodwill
million
Transcribed Image Text:Billy's BBQ reported sales of $795,000 and net income of $34,000. Billy's also reported ending total assets of $500,000 and
beginning total assets of $393,00o.
Required:
Calculate the return on assets, the profit margin, and the asset turnover ratio for Billy's BBQ.
Return on Assets
Choose Numerator
Choose Denominator
Return on Assets
Return on Assets
Profit Margin
Choose Numerator
Choose Denominator
Profit Margin
Profit Margin
%3D
Asset Turnover Ratio
Choose Numerator
Choose Denominator
Asset Turnover
Asset Turnover
o times
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