Solution-Calculate the balance of the goodwill that would

Calculate the balance of the goodwill that would be recorded

Reference no: EM132782027

Question - On July 1, 2019, Renaldo Incorporated paid cash for 21,000 shares of Henderson Company's $10 par value stock, when it was trading at $22 per share. At that time, Henderson's total stockholders' equity was $597,000, and they had 30,000 shares of stock outstanding, both before and after the purchase. The book value of Henderson's net assets is believed to approximate the fair values.

Required -

1. Prepare the journal entry that Renaldo would record at the date of acquisition on their general ledger.

2. Calculate the balance of the goodwill that would be recorded on Renaldo's general ledger, on Henderson's general ledger, and in the consolidated financial statements.

Reference no: EM132782027

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Calculate the balance of the goodwill that would be recorded

Reference no: EM132782027

Reference no: EM132782027

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