Johnson corporation acquired all of the outstanding common

Reference no: EM13587424

Johnson Corporation acquired all of the outstanding common stock of Smith Corporation for $11,000,000 in cash. The book value of Smith's net assets (assets minus liabilities) was $7,800,000. The fair values of all of Smith's assets and liabilities were equal to their book values with the following exceptions:

Book Value Fair Value
Receivables $1,300,000 $1,100,000
Property Plant and equip 8,000,000 9,400,000
Intangible assets 200,000 1,200,000

Required:Calculate the amount paid for goodwill.

Reference no: EM13587424

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