Reference no: EM132989331

Question - Green Company is considering acquiring the assets of Gold Company by assuming Gold's liabilities and by making cash payment. Gold Company has the following balance sheet on the date of acquisition:

Accounts Receivable 100,000

Total Liabilities 200,000

Inventory 100,000

Capital Stock (Br10 Par) 100,000

Land 100,000

Additional PIC 200,000

Building (Net) 220,000

Retained Earnings 300,000

Equipment (Net) 280,000

Total Asset 800,000

Total Liabilities and Equity 800,000

Appraisal indicates that the inventory is undervalued by Br 25,000; building is undervalued by Br 80,000; the equipment is overstated by Br 30,000; and the liability is overstated by Br 10,000. Determine the Goodwill that is recognized if Green Company pays Br 900,000 cash for the net assets of Gold Company.

Required - Record the above transaction for green company and gold company?