Purchasing delta tools, Johnston Mfg. is purchasing Delta

Purchasing delta tools

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Reference no: EM132067301

Johnston Mfg. is purchasing Delta Tools for $21.5 million in cash. The fixed assets of Delta Tools were recently appraised at $16.9 million. In addition, Delta Tools has $2.6 million in working capital and no debt. Johnston Mfg. will use the purchase accounting method to record this acquisition. What is the amount of the goodwill that will be shown on the books of Johnston Mfg. after the acquisition?

Reference no: EM132067301

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