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Accounting method to account for the acquisition

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Suppose a bidder purchase a target for $45 millions in cash. For purposes of the acquisition, the target's fixed assets are appraised at $30 million. Further, assume the target has working capital of $10 million and no long-term debt. If the bidder uses the purchase accounting method to account for the acquisition, find its goodwill.

Reference no: EM132740268

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