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 January 1, Year 2, 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 that date was $45 per share. The carrying amounts and fair values of Frey's assets and liabilities on January 1, Year 2, were as follows

	Carrying Amount	Fair Value
Cash	$240,000	$240,000
Receivables	270,000	270,000
Inventory	435,000	528,000
PPE	1,305,000	1,337,000
Liabilities	-525,000	-488,000
Net assets	1,725,000

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

Reference no: EM132652661

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What is the amount of goodwill resulting from the business

Reference no: EM132652661

Reference no: EM132652661

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