Pro-tech Software acquired all of the outstanding stock of Reliable Software for $14 million. The book value of Reliable’s net assets (assets minus liabilities) was $8.3 million. The fair values of Reliable’s assets and liabilities equaled their book values with the exception of certain intangible assets whose fair values exceeded book values by $2.5 million. Calculate the amount paid for goodwill.

Q: n January 1, Beckman, Inc., acquires 60 percent of the outstanding stock of Calvin for $36,000.…

A: FV of trade secret=Total acquisition value-Allocated to machine=$60,000-$50,000=$10,000

Q: On August 1, 20x1, German Corp. acquired all the identifiable assets and assumed the liabilities of…

A: As per IFRS 3 Acquisition-related costs incurred by the acquiring company to effect the business…

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A: Non-controlling interest represents the shareholders that have a minority interest in the company.

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A: A financial statement that details the amounts of cash and cash equivalents that enter and leave a…

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A: Impairment of loss: The impairment loss must be recorded so that the asset is written down. There is…

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A: Goodwill is determined as an excess of the cost of a company acquired over the fair value of its net…

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A: Answer: Good will is the intangible asset and the value which is the part of value gained on…

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A: Loss on impairment = Carrying value of goodwill - Fair value of goodwill

Q: goodwill (gain on bargain purchase)

A: Goodwill(gain on bargain purchase) = Purchase consideration - (Fair value of assets - Fair value of…

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A: good will is an intangible asset and it is present in all the companies. It cant be seen or touched.…

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

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A: Current Investment Current Investment should valued at lower of cost or NRV whichever is lower…

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Q: 6. In January 2002, Henry Corporation acquired 20 percent of the outstanding ordinary shares of…

A: When the asset is brought or purchased, the worth at that time is called carrying value of asset.

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A: Cost of acquisition means total expenses incurred by entity to purchase other entity or assets.

Q: Purple Corp. purchased all of the listed assets and liabilities of Sudden Corp. for $1,600,000. The…

A: Goodwill: Goodwill is an intangible asset. It is defined as the excess of cost of an acquired…

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A: SOLUTION- CONSOLIDATED BALANCE SHEET  IS MERE CONSOLIDATION OF FINANCIAL DETAILS OF ALL A SUBSIDIARY…

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A: Since you have posted a question with multiple sub-parts, we will solve first three sub-parts for…

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A:

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Q: During the current year, Brewer Company acquired all of the outstanding common stock of Miller Inc,…

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A: Goodwill is the excess value paid by the acquirer over the fair value of net assets to acquire the…

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A: It is pertinent to note that while determining goodwill or gain on purchase price on the date of…

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A: Consolidation is a term used for merging of several companies of an industry. The assets,…

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A: Compute the non-controlling interest in subsidiary income. Working Notes:

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A:

Q: equired: Show and label calculations. Calculate consolidated ending retained earnings reported on…

A: Consolidate financial statement:A financial statement in which the company reports financial…

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A: The goodwill is calculated by deducting the fair value of the assets from the acquisition price.

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A: Consolidation: It can be defined as the process of merging or combining various smaller businesses…