None On January 1, 2022, Parent acquired Sub by issuing $46,000 in common shares. On that date, Sub's fair value of CurrentAssets and Fixed Assets were worth $7,000 and $59,000, respectively. The fair value of current liabilities on the date ofacquisition was $21,000. There was a previously unrecorded patent for the Sub, that can now be recognized, in theamount of $11,000Calculate goodwill on the date of acquisition.

To compute for goodwill, we subtract the purchase price (or the consideration transferred) to the…

Answered: On January 1, 2022, Parent acquired Sub…

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter12: Intangibles

Section: Chapter Questions

Problem 18E

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