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Allisa [31]
3 years ago
8

Burrough Corporation paid $80,000 to acquire all of Helyar Company’s net assets. Helyar reported assets with a book value of $60

,000 and fair value of $98,000 and liabilities with a book value and fair value of $23,000 on the date of combination. Burrough also paid $3,000 to a search firm for finder's fees related to the acquisition. What amount will be recorded as goodwill by Burrough Corporation while recording its investment in Helyar?
Business
1 answer:
german3 years ago
6 0

Answer: the goodwill is $5000

Explanation:

We don't take into account $60,000 because we are going to use the fair value or the reasonable price.

Net assets = Assets-liabilities

Net assets = $98,000 - $23,000

Net assets= $75,000

Burrough Corporation pay $. 80,000 (We don't take into account $3000 paid to another firm)

So the goodwill pay is $80,000-$75000= $5,000

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Answer:

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3 years ago
Quartz Instruments had Retained Earnings of $150,000 at December 31, 2018. Net income for 2019 was $95,000, and dividends for 20
Svet_ta [14]

Answer:

The answer is B. $210,000

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8 0
3 years ago
Mitchell Corporation bought equipment on January 1, 2012 .The equipment cost $120,000 and had an expected salvage value of $20,0
murzikaleks [220]

Answer:

$100,000

Explanation:

Depreciable cost refers to the portion of an asset's costs that will be spread throughout the use-life of the asset. It is the amount to depreciated over the gainful life of the asset.  

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Depreciable cost =$100,000

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3 years ago
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