Mickey Inc. is considering purchasing the net assets of Minnie Corporation. Mickey has been given the following information on Minnie Corporation: Statement of Financial Position December 31, 2021 Fair Value December 31, 2021 Current assets $236,000 Current assets $225,500 PPE (net) 625,000 PPE 584,000 Land 175,000 Land 415,000 Current liabilities 187,000 Current liabilities 187,000 Common shares 577,000 Retained earnings 272,000 Mickey offered $1,425,000 to purchase the company. How much goodwill will Mickey record on this purchase? Question 8 options: $202,000 $13,500 $387,500 $389,000
Mickey Inc. is considering purchasing the net assets of Minnie Corporation. Mickey has been given the following information on Minnie Corporation: Statement of Financial Position December 31, 2021 Fair Value December 31, 2021 Current assets $236,000 Current assets $225,500 PPE (net) 625,000 PPE 584,000 Land 175,000 Land 415,000 Current liabilities 187,000 Current liabilities 187,000 Common shares 577,000 Retained earnings 272,000 Mickey offered $1,425,000 to purchase the company. How much goodwill will Mickey record on this purchase? Question 8 options: $202,000 $13,500 $387,500 $389,000
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 9RE
Related questions
Question
Mickey Inc. is considering purchasing the net assets of Minnie Corporation. Mickey has been given the following information on Minnie Corporation:
December 31, 2021 |
Fair Value December 31, 2021 |
||
Current assets |
$236,000 |
Current assets |
$225,500 |
PPE (net) |
625,000 |
PPE |
584,000 |
Land |
175,000 |
Land |
415,000 |
Current liabilities |
187,000 |
Current liabilities |
187,000 |
Common shares |
577,000 |
|
|
|
272,000 |
|
|
Mickey offered $1,425,000 to purchase the company. How much
Question 8 options:
$202,000 |
|
$13,500 |
|
$387,500 |
|
$389,000 |
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