Pip’s Paw Patrol had the following account Balances on Dec 31, 2021: BOOK Value FMV Current Assets $225,000 $250,000 Land $320,000 $350,000 Building $450,000 $650,000 Accum Dep ($50,000) Equipment $195,000 $50,000 Accum Dep ($100,000) Current Liabilities ($75,000) ($75,000) Bonds Payable ($200,000) ($300,000) Common Stock ($65,000) Paid in Capital ($700,000)
Pip’s Paw Patrol had the following account Balances on Dec 31, 2021: BOOK Value FMV Current Assets $225,000 $250,000 Land $320,000 $350,000 Building $450,000 $650,000 Accum Dep ($50,000) Equipment $195,000 $50,000 Accum Dep ($100,000) Current Liabilities ($75,000) ($75,000) Bonds Payable ($200,000) ($300,000) Common Stock ($65,000) Paid in Capital ($700,000)
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter9: Long-term Liabilities
Section: Chapter Questions
Problem 89E: Ratio Analysis Rising Stars Academy provided the following information on its 2019 balance sheet and...
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Pip’s Paw Patrol had the following account Balances on Dec 31, 2021:
BOOK Value FMV
Current Assets $225,000 $250,000
Land $320,000 $350,000
Building $450,000 $650,000
Accum Dep ($50,000)
Equipment $195,000 $50,000
Accum Dep ($100,000)
Current Liabilities ($75,000) ($75,000)
Bonds Payable ($200,000) ($300,000)
Common Stock ($65,000)
Paid in Capital ($700,000)
Pip’s industry anticipates an 8% return on investments of P/E/P before
Pip generated a $120,000 profit in 2021. Pip would like to be paid for 4 years of excess earnings.
REQUIRED:
a. Calculate the Goodwill
b. Calculate the price
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