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What is the amount of goodwill

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Reference no: EM132747897

Problem - Pool Company issued 120,000 shares of 10 par common stock with a fair value of 2,550,000 for the net assets of Sport Company. In addition, Pool incurred the following acquisition-related costs:

Legal Fees to arrange the business combination 25,000

Costs of SEC registration, including accounting and legal fees 12,000

Cost of issuing stock certificate 3,000

Documentary stamp tax 20,000

Immediately before the business combination in which Spot Company was dissolved, Spot's assets and equities were as follows:

 

Book Value

Fair Value

Current assets

2,000,000

1,100,000

Plant Assets

1,500,000

2,200,000

Liabilities

300,000

300,000

Common stock

2,000,000

 

Retained earnings

200,000

 

Required - What is the amount of goodwill (income from acquisition) and APIC to be recognized by Pool Company?

Reference no: EM132747897

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