Homework Help is Here – Start Your Trial Now!
Business
Economics
Compute the amount of acquired Goodwill, including contingent earnings and bargain purchase Assume that you are charged with assigning fair values related to a $6,080,000 acquisition. You determine that the fair value of the net identifiable tangible assets is $2,960,000 You also conclude that the purchase included a Customer List with a fair value at $544,000. a. How much Goodwill will you record in this acquisition? $ 2,576,000 b. Continuing from part (a), now also assume that the purchase and sale agreement requires the payment of an additional $1,480,000 if the subsidiary achieves a certain level of earnings. You estimate the fair value of that contingent earnings clause in the agreement to be $352,000. How does this additional information affect your computation of Goodwill The amount of Goodwill recorded is $ 2,928,000 c. This part of the exercise is independent of parts (a) and (b). Assume that the purchase price is $6,080,000 and that fair value of the net identifiable tangible assets is $2.960,000. You also conclude that the purchase included a Customer List that you value at $1,024,000 and a Patent valued at $3,040,000 How much Goodwill will you record in this acquisition? 0 The amount of Goodwill recorded is: $ 944,000 Check x

Compute the amount of acquired Goodwill, including contingent earnings and bargain purchase Assume that you are charged with assigning fair values related to a $6,080,000 acquisition. You determine that the fair value of the net identifiable tangible assets is $2,960,000 You also conclude that the purchase included a Customer List with a fair value at $544,000. a. How much Goodwill will you record in this acquisition? $ 2,576,000 b. Continuing from part (a), now also assume that the purchase and sale agreement requires the payment of an additional $1,480,000 if the subsidiary achieves a certain level of earnings. You estimate the fair value of that contingent earnings clause in the agreement to be $352,000. How does this additional information affect your computation of Goodwill The amount of Goodwill recorded is $ 2,928,000 c. This part of the exercise is independent of parts (a) and (b). Assume that the purchase price is $6,080,000 and that fair value of the net identifiable tangible assets is $2.960,000. You also conclude that the purchase included a Customer List that you value at $1,024,000 and a Patent valued at $3,040,000 How much Goodwill will you record in this acquisition? 0 The amount of Goodwill recorded is: $ 944,000 Check x

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
14th Edition
ISBN:9781305506381
Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Chapter13: best-practice Tactics: Game Theory
Section: Chapter Questions
Problem 14E
See similar textbooks
icon
Related questions
Question
100%

M1.)

Compute the amount of acquired Goodwill, including contingent earnings and bargain purchase Assume that you are charged with assigning fair values related to a 56,080,000 acquisition. You determine that the fair value of the net identifiable tangible assets is $2,960,000 You also conclude that the purchase included a Customer List with a fair value at $544,000. a. How much Goodwill will you record in this acquisition? $ 2,576,000 b. Continuing from part (a), now also assume that the purchase and sale agreement requires the payment of an additional $1,480,000 if the subsidiary achieves a certain level of earnings. You estimate the fair value of that contingent earnings clause in the agreement to be $352,000. How does this additional information affect your computation of Goodwill The amount of Goodwill recorded is s 2,928,000 c. This part of the exercise is independent of parts (a) and (b). Assume that the purchase price is $6,080,000 and that fair value of the net identifiable tangible assets is $2.960,000. You also conclude that the purchase included a Customer List that you value at $1,024,000 and a Patent valued at $3,040,000. How much Goodwill will you record in this acquisition? The amount of Goodwill recorded is: $ 944,000 Check
Transcribed Image Text:Compute the amount of acquired Goodwill, including contingent earnings and bargain purchase Assume that you are charged with assigning fair values related to a 56,080,000 acquisition. You determine that the fair value of the net identifiable tangible assets is $2,960,000 You also conclude that the purchase included a Customer List with a fair value at $544,000. a. How much Goodwill will you record in this acquisition? $ 2,576,000 b. Continuing from part (a), now also assume that the purchase and sale agreement requires the payment of an additional $1,480,000 if the subsidiary achieves a certain level of earnings. You estimate the fair value of that contingent earnings clause in the agreement to be $352,000. How does this additional information affect your computation of Goodwill The amount of Goodwill recorded is s 2,928,000 c. This part of the exercise is independent of parts (a) and (b). Assume that the purchase price is $6,080,000 and that fair value of the net identifiable tangible assets is $2.960,000. You also conclude that the purchase included a Customer List that you value at $1,024,000 and a Patent valued at $3,040,000. How much Goodwill will you record in this acquisition? The amount of Goodwill recorded is: $ 944,000 Check
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 4 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Risk
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, economics and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Managerial Economics: Applications, Strategies an…
Managerial Economics: Applications, Strategies an…
Economics
ISBN:
9781305506381
Author:
James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:
Cengage Learning
Microeconomics A Contemporary Intro
Microeconomics A Contemporary Intro
Economics
ISBN:
9781285635101
Author:
MCEACHERN
Publisher:
Cengage
Principles of Economics 2e
Principles of Economics 2e
Economics
ISBN:
9781947172364
Author:
Steven A. Greenlaw; David Shapiro
Publisher:
OpenStax
SEE MORE TEXTBOOKS