How much reported for goodwill

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On June 1, Cline Co. paid $996,000 cash for all of the issued and outstanding common stock of Renn Corp. The carrying amounts for Renn's assets and liabilities on June 1 follow:

Cash

$ 211,000

Accounts receivable

225,000

Capitalized software costs

346,000

Goodwill

126,000

Liabilities

(165,000)

Net assets

$ 743,000

Question 1: On June 1, Renn's accounts receivable had a fair value of $169,000. Additionally, Renn's in-process research and development was estimated to have a fair value of $269,000. All other items were stated at their fair values. On Cline's June 1 consolidated balance sheet, how much is reported for goodwill?

 

Reference no: EM132465876

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