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Alex
3 years ago
14

At the beginning of fiscal 2014, Standard Rate Company acquired a small savings and loan association for $68 million. The book v

alue of the assets of the acquired company were $174 million, its liabilities $115 million. An appraiser determined that the acquiree's land had a fair value of $2 million in excess of its net book value. Standard Rate also determined that the acquiree had an unrecorded liability of $4.5 million relating to a lawsuit. The book value of all other assets and liabilities approximated fair value. What did Standard Rate Company record as goodwill for this acquisition
Business
1 answer:
Ede4ka [16]3 years ago
8 0

Answer:

$11,500,000

Explanation:

Particulars                                                                       Amount'million

Book value of the assets of the acquired company       $174

Add: Fair value in excess of its net book value               $2

Less: Liabilities                                                                   $115

Less: Unrecorded liability relating to a lawsuit                $4.50

Less: Acquisition Cost of the company                            <u>$68    </u>

Goodwill                                                                              <u>$11.50</u>

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