Solution-How much goodwill was recorded on the date of

How much goodwill was recorded on the date of acquisition

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Question - Par Inc purchased all of the outstanding common shares of Sub Corp for cash of $374,487 on Jan 1, Year 1. On the date of acquisition, Sub's identifiable net assets had a carrying value of $299,578. The acquisition differential was allocated to the excess of fair value over book value as follows: inventory's fair value was higher by $29,941; Equipment's fair value was lower by $18,714; Trademarks' fair value was higher by $24,200; and Bonds Payable's fair value was higher by $7,485. Equipment, Trademarks, and Bonds Payable each had an amortizable life of ten (10) years. How much Goodwill was recorded on the date of acquisition for the consolidated company?

a. $44,619

b. $46,967

c. $48,141

d. $49,315

e. $45,793

Reference no: EM133053621

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How much goodwill was recorded on the date of acquisition

Reference no: EM133053621

Reference no: EM133053621

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