Solution-What will east corp record as goodwill for this

What will east corp record as goodwill for this acquisition

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Reference no: EM132518487

East Corp. acquired 100% of the outstanding voting shares of Lansing Co. To obtain these shares, East paid $940,000 cash. On the date of acquisition, the book value of Lansing's stockholders' equity is $690,000.

East is willing to pay $940,000 for a company with a book value of equity of $690,000 because it believes:

Lansing's land is undervalued by $100,000
Lansing has an unrecorded trademark of $50,000

Question 1: All of Lansing's remaining assets and liabilities were appraised at fair market values equal to their existing net book values. Any remaining unallocated portion of the purchase price is ascribed to corporate synergies and other general unidentifiable intangible assets. What will East Corp. record as goodwill for this acquisition?

Reference no: EM132518487

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What will east corp record as goodwill for this acquisition

Reference no: EM132518487

Reference no: EM132518487

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