Compute the amount of goodwill acquired by swc

Reference no: EM132785291

On September 1, 2019, Saudi White Cement (SWC) acquired Rio Tinto Enterprises for a cash payment of $700,000. At the time of purchase, Rio Tinto's statement of financial position showed assets of $620,000, liabilities of $200,000, and equity of $420,000. The fair value of Rio Tinto's assets is estimated to be $800,000.

Required:

problem 1: Compute the amount of goodwill acquired by SWC

Reference no: EM132785291

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