PLTO Ltd. is considering purchasing the net assets of Ivanhoe Corporation. Following is the statement of financial position of Ivanhoe as at December 31, 2023: Ivanhoe Corporation Statement of Financial Position As at December 31, 2023 Current assets Buildings and equipment Accumulated depreciation Land Total assets Current liabilities Common shares Retained earnings Total equities $230,400 754,000 Value of goodwill (108,000) 169,000 Following are the fair values for Ivanhoe's net assets, as at December 31, 2023: Current assets Building and equipment Land Current liabilities $ $1,045,400 $187,000 582,000 276,400 $1,045,400 Calculate the value of goodwill that would be acquired by PLTO if it offered $2,061,600 for the net assets of Ivanhoe. $224,500 488,400 309,700 (166,000) $856,600
PLTO Ltd. is considering purchasing the net assets of Ivanhoe Corporation. Following is the statement of financial position of Ivanhoe as at December 31, 2023: Ivanhoe Corporation Statement of Financial Position As at December 31, 2023 Current assets Buildings and equipment Accumulated depreciation Land Total assets Current liabilities Common shares Retained earnings Total equities $230,400 754,000 Value of goodwill (108,000) 169,000 Following are the fair values for Ivanhoe's net assets, as at December 31, 2023: Current assets Building and equipment Land Current liabilities $ $1,045,400 $187,000 582,000 276,400 $1,045,400 Calculate the value of goodwill that would be acquired by PLTO if it offered $2,061,600 for the net assets of Ivanhoe. $224,500 488,400 309,700 (166,000) $856,600
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
Chapter13: Investments And Long-term Receivables
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![PLTO Ltd. is considering purchasing the net assets of Ivanhoe Corporation. Following is the statement of financial position of Ivanhoe
as at December 31, 2023:
Ivanhoe Corporation
Statement of Financial Position
As at December 31, 2023
Current assets
Buildings and equipment
Accumulated depreciation
Land
Total assets
Current liabilities
Common shares
Retained earnings
Total equities
Current assets
Building and equipment
Land
Following are the fair values for Ivanhoe's net assets, as at December 31, 2023:
Current liabilities
$230,400
754,000
(108,000)
169.000
Value of goodwill
$1,045,400
$187,000
582,000
276,400
$1,045,400
$
Calculate the value of goodwill that would be acquired by PLTO if it offered $2,061,600 for the net assets of Ivanhoe.
$224,500
488,400
309,700
(166,000)
$856,600](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F87fad0ee-75c5-4ca6-8c36-51ba51c6cde6%2Fe10186cb-8492-403e-a195-5d218fe078e7%2F3qbtv65_processed.png&w=3840&q=75)
Transcribed Image Text:PLTO Ltd. is considering purchasing the net assets of Ivanhoe Corporation. Following is the statement of financial position of Ivanhoe
as at December 31, 2023:
Ivanhoe Corporation
Statement of Financial Position
As at December 31, 2023
Current assets
Buildings and equipment
Accumulated depreciation
Land
Total assets
Current liabilities
Common shares
Retained earnings
Total equities
Current assets
Building and equipment
Land
Following are the fair values for Ivanhoe's net assets, as at December 31, 2023:
Current liabilities
$230,400
754,000
(108,000)
169.000
Value of goodwill
$1,045,400
$187,000
582,000
276,400
$1,045,400
$
Calculate the value of goodwill that would be acquired by PLTO if it offered $2,061,600 for the net assets of Ivanhoe.
$224,500
488,400
309,700
(166,000)
$856,600
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