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What amount should trudata report as goodwill

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Reference no: EM131770652

Use the following information to answer questions 15-16

The following information applies to the questions displayed below.On July 1, TruData Company issues 10,800 shares of its common stock with a $5 par value and a $42 fair value in exchange for all of Webstat Company's outstanding voting shares. Webstat's precombination book and fair values are shown below along with book values for TruData's accounts.

  TruData Webstat Webstat
  Book Values Book Values Fair Values
  Revenues (1/1 to 7/1) $(257,250)      $(137,000)       
  Expenses (1/1 to 7/1) 188,500       96,500        
  Retained earnings, 1/1 (134,000)      (150,500)       
  Cash and receivables 136,500       42,000       $ 42,000      
  Inventory 201,500       150,000       186,000      
  Patented technology (net) 249,750       127,000       163,400      
  Land 411,750       248,500       286,900      
  Buildings and equipment (net) 111,750       95,250       95,250      
  Liabilities (598,500)      (371,750)      (351,550)     
  Common stock (300,000)      (70,000)       
  Additional paid-in capital (10,000)      (30,000)       
 

1. On its acquisition-date consolidated balance sheet, what amount should TruData report as goodwill?

$0.
$31,600.
$55,300.
$120,300

Reference no: EM131770652

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