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What amount should godwin record for this investment

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Question - On January 1, 2020, Godwin paid $10,000 in cash and issued 300 shares of its $10 par value common stock to the owners of Corr company to acquire all of Corr's common stock. Godwin's common stock had a fair value of $40 per share on that date. Godwin also agreed to pay an additional amount to Corr's shareholders on January 1, 2021 if Corr's net income for 2020 exceeds $10,000. The probability-adjusted present value of that payment is $3,430. Finally Godwin paid $2,500 in brokerage fees and $3,500 in legal fees related to this acquisition. What amount should Godwin record for this investment?

Reference no: EM132915693

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