Compute the amount of goodwill acquired by ayayai

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Point 1: On August 1, 2017, Ayayai Corporation acquired Kingbird, Inc. for a cash payment of $2.10 million. At the time of purchase, Kingbird's balance sheet showed assets of $4,350,000, liabilities of $2,550,000, and owners' equity of $1,800,000. The fair value of Kingbird's identifiable assets is estimated to be $4,250,000.

Question 1: Compute the amount of goodwill acquired by Ayayai.

  • Value assigned to goodwill

Reference no: EM132476648

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