On January 17, Lina's Co. Paid $1,600,000 for all the issued and outstanding common stock of Ralph Inc. In a transaction properly accounted for as an acquisition. The book values and fair values of Ralph's assets and liabilities on January 17, were as follows : Book Value Fair Value S 160,000 180,000 S160,000 180,000 Cash Receivables (net) Inventory Plant and equipment (net) Liabilities 300,000 920,000 315,000 820,000 (350.000) S1,125,000 (3500) S1,210,000 Net assets What is the amount of Goodwill resulting from the business combination?

On January 17, Lina's Co. Paid $1,600,000 for all the issued and outstanding common stock of Ralph Inc. In a transaction properly accounted for as an acquisition. The book values and fair values of Ralph's assets and liabilities on January 17, were as follows : Book Value Fair Value S 160,000 180,000 S160,000 180,000 Cash Receivables (net) Inventory Plant and equipment (net) Liabilities 300,000 920,000 315,000 820,000 (350.000) S1,125,000 (3500) S1,210,000 Net assets What is the amount of Goodwill resulting from the business combination?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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