What is the Goodwill, A Co. will close some of the

What is the Goodwill

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Reference no: EM132662668

Question - A Co. acquired all assets and liabilities of B Co. by issuing 10,000 shares with par value of $20 per share and fair value of $100 per share. A Co. incurred $40,000 in issuing the shares and $60,000 in professional fees and administrative costs in effecting the business combination. On acquisition date, B's identifiable assets and liabilities have fair values of $1.8M and $900,000, respectively. After the business combination, A Co. will close some of the operating segments of B Co. The closure costs are estimated at $400,000. What is the Goodwill (gain on bargain exchange)?

Reference no: EM132662668

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