What is the amount of goodwill recorded in connection

Reference no: EM133474968

Question: On January 1, 2021, Eisman Company purchased 100% of the common stock Kandler Enterprises for $600,000. This transaction is a "nontaxable" acquisition under the Internal Revenue Code. On the date of acquisition, Kandler had common stock of $200,000 and retained earnings of $280,000. The fair values of Kandler's net assets equal their respective book values except for equipment that is undervalued by $30,000 and an unrecorded brand name valued at $45,000. Assume that the tax bases of Kandler's pre-acquisition identifiable net assets equal their book values. Eisman's tax effective tax rate is 30%. What is the amount of goodwill recorded in connection with this combination?

Reference no: EM133474968

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