On January 1, 2011, Pat Corporation paid $400,000 for purchase of Sad Corporatic stockholders' equity consisted of $300,000 capital stock and $200,000 retained earnin were equal to fair values of Sad's assets and liabilities, except for a building and lan had a book value of $80,000, a fair value of $120,000, and a remaining useful life of land had a book value of $50,000 and a fair value of $150,000. Reguired · Calculate goedwill at the date of purchase of Sad Cornoration
On January 1, 2011, Pat Corporation paid $400,000 for purchase of Sad Corporatic stockholders' equity consisted of $300,000 capital stock and $200,000 retained earnin were equal to fair values of Sad's assets and liabilities, except for a building and lan had a book value of $80,000, a fair value of $120,000, and a remaining useful life of land had a book value of $50,000 and a fair value of $150,000. Reguired · Calculate goedwill at the date of purchase of Sad Cornoration
Chapter9: Acquisitions Of Property
Section: Chapter Questions
Problem 44P
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Transcribed Image Text:On January 1, 2011, Pat Corporation paid $400,000 for purchase of Sad Corporation, when Sad's
stockholders' equity consisted of $300,000 capital stock and $200,000 retained earnings. Book values
were equal to fair values of Sad's assets and liabilities, except for a building and land. The building
had a book value of $80,000, a fair value of $120,000, and a remaining useful life of eight years. The
land had a book value of $50,000 and a fair value of $150,000.
Required : Calculate goodwill at the date of purchase of Sad Corporation.
Goodwill calculation
Consideration :
Asset
Goodwvill
Transcribed Image Text:3. Goodwill calculation
Consideration :
Asset
Goodwill
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