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algol13
3 years ago
12

Anderson Company acquires Thompson Company by paying $30 million in cash. The fair value of the identifiable assets acquired is

$38 million. The fair value of the identifiable liabilities acquired is $6 million. What will be the amount of goodwill that Anderson Company would record as part of this acquisition?
Business
1 answer:
bonufazy [111]3 years ago
5 0

Answer:

The fair value of the assets of the identifiable assets of Thompson company are $38 million and the fair value of identifiable liabilities is $6 million. So if we were to find the value of Thompson company just on the basis of identifiable assets and identifiable liabilities we would subtract the identifiable liabilities from the identifiable assets.

38-6= $32 million.

This means that on the basis of Identifiable assets and identifiable liabilities the value of Thompson company is $32 million but they Anderson Company $ 30 million for the company which means that the company has a negative goodwill. The negative good will is the price paid - the fair value.

30 million - 32 million = -2 million

This means that Anderson Company will record -2 million as negative goodwill and this implies a bargain purchase which means Anderson company will record this 2 million as a gain on their income statement.

Explanation:

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Explanation:

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3 years ago
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Answer:

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Explanation:

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7 1
3 years ago
Brulee Bakery produces both regular and vegan baked goods. Each quarter, the research and development department develops a reci
erastovalidia [21]

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Therefore, this type of process is basically refers as the product level activity.

3 0
2 years ago
1. Issued 30,000 shares of common stock in exchange for $300,000 in cash.
Svetradugi [14.3K]

Solution :

       Assets          =   Liabilities   +   Paid in capital   +   retained earnings

1.   $ 300,000                                  $ 300,000

2.   $ 30,000             $ 30,000

3.   $ 90,000             $ 90,000

4.   $ 50,000                                                                        $ 50,000

5.   $ 5,000                                                                          $ 5,000

6.   $ 6,000                                                                          $ 6,000

7.   $ 70,000            $ 70,000        

8.      --

9.    $ 1,000                                                                          $ 1,000

Point 4 -- the accounts receivable will increase by $ 120,000 due to the credit sales and the cost of goods sold.

Point 6 -- Adjustments entry at the year end for 3 months from January to March 2022 should be reduced from both assets and retained earnings and the adjusted amount would be $ 4500.

Point 8 -- No impact as the cash is collected against the account receivable and both are assets.

5 0
3 years ago
Mi famila y yo en Chicago antes.​
Bad White [126]

Answer:

Mi familia y yo  estabamos en Chicago antes.​

Explanation:

8 0
3 years ago
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