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What amount of goodwill as a result of the acquisition

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Nelson Corp. paid $1,000,000 cash to purchase 100% of the outstanding common stock of Orange Corp. on April 1 of the current year. Examination of Orange's assets and liabilities reveals the following:

                                            Book value             Fair value on April 1

Cash                              $100,000                 $100,000

Marketable securities           200,000                  250,000

Land                                 50,000                   300,000

Accounts payable               75,000                     75,000

Stockholder equity 275,000

Problem 1: Nelson should record what amount of goodwill as a result of this acquisition?

Reference no: EM132958257

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