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erica [24]
4 years ago
14

On November 30, Year 1, Parlor, Inc. purchased for cash at $15 per share all 250,000 shares of the outstanding common stock of S

haw Co. At November 30, Year 1, Shaw's balance sheet showed a carrying amount of net assets of $3,000,000. At that date, the fair value of Shaw's property, plant, and equipment exceeded its carrying amount by $400,000, and the fair value of Shaw's trademark name brand is $75,000. In its November 30, Year 1, consolidated balance sheet, what amount should Parlor report as goodwill
Business
1 answer:
zepelin [54]4 years ago
6 0

Answer:

$275,000

Explanation:

Goodwill in business combination arises when the price paid in acquiring a business exceeds the fair value of the acquired business net assets . The fair value is used rather than the carrying amount to ensure fairness and an unbiased result

<u>Workings</u>

Purchase consideration = 250,000*15 =3,750,000

Percentage acquired = 100%

Fair value of net asset = 3,000,000+400,000+75,000= 3,475,000

Goodwill = 3,750,000=3,475,000 =275,000

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Answer: The correct answer is <u>".B. There is no beginning inventory.".</u>

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Lucia's bank offers a savings account with 1.9% APR compounded monthly. What is the actual annual percentage yield on this accou
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