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What is the amount of gain or goodwill

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Question - Babybruin Company is in play for an acquisition. The book value of its net assets reported on its December 31, 2021 financial statement was $3,600,000. An analysis indicated that the fair value of Babybruin's tangible assets exceeded the book value by $600,000, and the fair value of identifiable intangible assets exceeded book value by $320,000.

a. What is the fair value of all identifiable net assets of Babybruin that an acquirer will consider in bidding for Babybruin?

b. If an acquirer paid $5m cash on January 1, 2021 for Babybruin, what is the amount of gain or goodwill that the acquirer will need to recognize from the acquisition?

c. If an acquirer paid $4.2m cash on January 1, 2021 for Babybruin, what is the amount of gain or goodwill that the acquirer will need to recognize from the acquisition?

Reference no: EM133127892

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