What is the amount of gain or goodwill

Assignment Help Accounting Basics
Reference no: EM133127892

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

Questions Cloud

What is forecasted sales in dollars, monthly and annually : Hotel Las Cruces is in the process of forecasting for next year's operation. What is the forecasted sales in dollars, monthly and annually
Meeting agenda for the monthly senior management : Implement and evaluate the change management strategy - Identify change requirements and opportunities to take MMI from the current business state to a desired
What is the achieved upper deviation limit for Attribute II : . The Auditor decides on a tolerable deviation rate of 7% for the first attribute and 6% for the second. What is the achieved upper deviation limit
Evaluate the change management strategy : Identify change requirements and opportunities to take MMI from the current business state to a desired future state - Evaluate the change management strategy
What is the amount of gain or goodwill : 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
Explain how to conduct risk management : Explain how to conduct risk management from risk identification to risk treatment and events or trends that may impact on the achievement of organisational
What amount will be in the account : If she places her deposits in a savings account that pays 4?% per? year, what amount will be in the account in ?18 years
Calculate PPPs net cash flows from these accounts : Opening balance of share capital: R81,000. Based on this information, calculate PPP's net cash flows from these accounts in the 20x1 financial year
What is Steve Operating Leverage : Steve has no variable selling and the only other costs are fixed at $5,000 per month. Steve sells cookies for $4 each. What is Steve's Operating Leverage

Reviews

Write a Review

Accounting Basics Questions & Answers

  Q mindy and mike miller paid the subsequent medical

q. mindy and mike miller paid the subsequent medical expenses during the year all in excess of reimbursement.hospital

  Compute the return on investment for ohio service company

The Ohio Service Company, a division of a bank holding company, Compute the return on investment (R01) for Ohio Service Company

  Flexible budget planning performance eval

Prepare a realistic flexible budget for next year for the McDonald's Corporation using economic and company trends. Use three different growth rates (low, average and high) for sales and adjust the expenses based on whether you assume that they v..

  Complete balance sheet and prepare a statement of changes

Complete balance sheet and prepare a statement of changes in retained earnings. Following is a statement of cash flows (indirect method) for Hartford, Inc., for the year ended December 31, 2014.

  What similarities do you see between the companies

Give an example of at least two different types of companies and identify the basic activities and transaction cycles in each. What differences and similarities do you see between the companies?

  How much he needs to save per month to achieve his goal

Hunter is 24 years old and wants to plan on having $1500 at the age of 65 he currently does not have any savings, how much he needs to save per month

  Calculate the net gain or loss from this strategy

Demonstrate how this will be achieved and calculate the net gain (or loss) from this strategy if the 90-day bank bill rate turns out to be 6% in September 2012

  How much can B Corporation deduct

The bonus is paid to Bonnie on February 1, 2020; the interest is not paid until 2021. How much can B Corporation deduct on its 2019 tax return

  How much should be recorded as share premium

Question - On Jan. 1, 2021, GO Corporation issued P7,500,000 face amount, 5-year bonds at 111. How much should be recorded as share premium

  What was the cost of goods sold for the month

During August, the cost of goods manufactured was $73,000. The beginning finished goods inventory was $15,000 and the ending finished goods inventory was $21,000. What was the cost of goods sold for the month?

  What rate of return would be earning

They don't have the slightest idea what return they would be making on their investment of $17,067.35. What rate of return would they be earning?

  Mr and mrs d file a joint return for the current year mr d

mr. and mrs. d file a joint return for the current year. mr. d is 67 years old and mrs. d is 52 years old. they provide

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd