Solution-What is the amount of goodwill resulting from the

What is the amount of goodwill resulting from the business

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Question - On December 31, year 1, Neal Co. issued 100,000 shares of its $10 par value common stock in exchange for all of Frey Inc.'s outstanding stock. The fair value of Neal's common stock on December 31, year 1, was $19 per share. The carrying amounts and fair values of Frey's assets and liabilities on December 31, year 1, were as follows:

Accounts	Carrying amount	Fair value
Cash	$240,000	$240,000
Receivables	270,000	270,000
Inventory	435,000	405,000
Property, plant, and equipment	1,305,000	1,440,000
Liabilities	(525,000)	(525,000)
Net assets	$1,725,000	$1,830,000

Required - What is the amount of goodwill resulting from the business combination?

a. $70,000

b. $175,000

c. $105,000

d. $0

Reference no: EM132646515

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What is the amount of goodwill resulting from the business

Reference no: EM132646515

Reference no: EM132646515

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