Calculate the amount paid for goodwill

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Reference no: EM131265056

The Jonas Corporation purchased all of the outstanding common stock of Bieber Corporation for $25 million in cash. The book value of Bieber’s net assets (assets minus liabilities) was $16.25 million. The fair values of all of Bieber’s assets and liabilities were equal to their book values with the following exceptions:

Book Value Fair Value

Receivables $3,000,000 $2,850,000

P,P,&E $10,200,000 $11,200,000

Intangible Assets $30,000 $3,000,000

Calculate the amount paid for Goodwill.

Reference no: EM131265056

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