What is the goodwill to be reported on pacific corporation

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Reference no: EM133432652

Question: On January 1, Year 1, Pacific Corporation acquired 75% of Sand Corporation's 200,000 outstanding common shares for $2,850,000. On January 1, the book value of Sand's net assets was $3,000,000. Book value equaled fair value for all of Sand's assets and liabilities except land, which had a fair value $200,000 greater than book value, and equipment, which had a fair value $150,000 greater than book value. On January 1, Year 1, Sand had a non-compete agreement with a fair value of $300,000. What is the goodwill to be reported on Pacific Corporation's December 31, Year 1 balance sheet under U.S. GAAP?

On January 1, Year 1, Pacific Corporation acquired 75% of Sand Corporation's 200,000 outstanding common shares for $2,850,000. On January 1, the book value of Sand's net assets was $3,000,000. Book value equaled fair value for all of Sand's assets and liabilities except land, which had a fair value $200,000 greater than book value, and equipment, which had a fair value $150,000 greater than book value. On January 1, Year 1, Sand had a non-compete agreement with a fair value of $300,000. What is the goodwill to be reported on Pacific Corporation's December 31, Year 1 balance sheet under U.S. GAAP?

Reference no: EM133432652

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