Solution-Calculate the amount paid for goodwill

Calculate the amount paid for goodwill

Reference no: EM133132422

Question - Johnson Corporation acquired all of the outstanding common stock of Smith Corporation for $13,160,000 in cash. The book value of Smith's net assets (assets minus liabilities) was $9,600,000. The fair values of all of Smith's assets and liabilities were equal to their book values with the following exceptions:

	Book value	Fair Value
Receivables	$3,100,000	$2,720,000
Property, plant, and equipment	9,800,000	11,380,000
Intangible assets	380,000	1,560,000

Required - Calculate the amount paid for goodwill.

Reference no: EM133132422

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Calculate the amount paid for goodwill

Reference no: EM133132422

Reference no: EM133132422

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