Reference no: EM132836654

On January 1, 20x1, Marvee acquired the net assets of Mae by paying cash of $200,000 and issuance of 20,000 shares with market value of $100. On this date, the fair value of assets and liabilities amounted to $2,500,000 and $400,000, respectively.

• Marvee has estimated a restructuring provision of $250,000 representing the exit cost of Mae's activities, the cost of terminating the employees of Mae. Marvee also renting a building to Mae under an operating lease. Marvee has determined that the term of the operating lease on the building compared to the market contract terms is favorable and its fair value is estimated at $50,000.

Problem 1: Assuming that Marvee determined the contract term of the operating lease is unfavorable, how much is the goodwill after business combination?