Reference no: EM132797271

Snoopy Inc. is considering purchasing the net assets of Woodstock Corporation. Following is the statement of financial position of Woodstock as at December 31, 2020.

WOODSTOCK CORPORATION
Statement of Financial Position
As at December 31, 2020

Current assets                           $ 231,400
Buildings and equipment               753,000
Accumulated amortization            (113,000)
Land                                         173,000
Total assets                            $ 1,044,400
Current liabilities                         $ 187,000
Common shares                              577,000
Retained earnings                             280,400
Total liabilities and equity                   $ 1,044,400

Following are the fair values of Woodstock's net assets as at December 31, 2020.

Current assets                   $ 225,500
Buildings and equipment            482,600
Land                                   313,500
Current liabilities                     (166,300)
                                               $ 855,300

Instructions

Problem 1: Calculate the value of goodwill that would be recorded by Snoopy if it offered $ 2,060,300 for the net assets of Woodstock Corporation.