l touch ?1:28 PM49%Expert Q&ADoneP Company wishes to acquire SCo. for cash in an asset acquisition, andappraisals reveal that the inventory has a fair value $195,000, and the equipmenthas a current value of $625,000. The book value and fair value of liabilities arethe same. The following balance sheets were reported on January 1, 2011, for PCompany and S Company:S Co.$ 30,000P Co.Cash$ 150,000InventoryEquipment (net)450,000150,0001,320,000570,000Total$1,920,000$750,000$ 450,000Total liabilitiesCommon stock, $20 par valueOther contributed capitalRetained earnings$150,000600,000300,000375,000105,000495,000$1,920,000195,000Total$750,000Determine the purchase price above which P Co. would record goodwill.*O $705,000O $710,000O S700,000$695,000O None of the options is correctDetermine the purchase price at which P Co. would record a $30.000 gain."O $685,000O $670,000$690,000O s665.000O None of the options is correct

Goodwill on acquisition is arising on paying the amount over the net identifiable assets of the…

P Company wishes to acquire S Co. for cash in an asset acquisition, and appraisals reveal that the inventory has a fair value $195,000, and the equipment has a current value of $625,000. The book value and fair value of liabilities are the same. The following balance sheets were reported on January 1, 2011, for P Company and S Company: S Co. $ 30,000 P Co. Cash $ 150,000 Inventory 450,000 150,000 Equipment (net) Total 1,320,000 $1.920,000 570,000 $750,000 Total liabilities $ 450,000 $150,000 Common stock, $20 par value Other contributed capital Retained earnings 600,000 375,000 300,000 105,000 195,000 $750,000 495,000 Total $1,920,000 Determine the purchase price above which P Co. would record goodwill. O $705,000 $710,000 O $700,000 O $695,000 O None of the options is correct Determine the purchase price at which P Co. would record a $30.000 gain." O $685,000 O $670,000 O $690,000 O s665.000 O None of the options is correct O O O OO O O O OC

P Company wishes to acquire S Co. for cash in an asset acquisition, and appraisals reveal that the inventory has a fair value $195,000, and the equipment has a current value of $625,000. The book value and fair value of liabilities are the same. The following balance sheets were reported on January 1, 2011, for P Company and S Company: S Co. $ 30,000 P Co. Cash $ 150,000 Inventory 450,000 150,000 Equipment (net) Total 1,320,000 $1.920,000 570,000 $750,000 Total liabilities $ 450,000 $150,000 Common stock, $20 par value Other contributed capital Retained earnings 600,000 375,000 300,000 105,000 195,000 $750,000 495,000 Total $1,920,000 Determine the purchase price above which P Co. would record goodwill. O $705,000 $710,000 O $700,000 O $695,000 O None of the options is correct Determine the purchase price at which P Co. would record a $30.000 gain." O $685,000 O $670,000 O $690,000 O s665.000 O None of the options is correct O O O OO O O O OC

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 7P: Hamilton Companys balance sheet on January 1, 2019, was as follows: Korbel Company is considering...

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