Johnson Corporation acquired all of the outstanding common stock of Smith Corporation for $12,200,000 in cash. The book value of Smith's net assets (assets minus liabllities) was $8,800,000. The fair values of all of Smith's assets and labilities were equal to their book values with the following exceptions: hook Valum $2,300,000 2,000,000 9,000,000 300,000 YALE Valun Receivables Proparty, plant, and equi pment Intangible anneta 10,500,000 1,400,000 Required: Calculate the amount paid for goodwill. Goodwill
Johnson Corporation acquired all of the outstanding common stock of Smith Corporation for $12,200,000 in cash. The book value of Smith's net assets (assets minus liabllities) was $8,800,000. The fair values of all of Smith's assets and labilities were equal to their book values with the following exceptions: hook Valum $2,300,000 2,000,000 9,000,000 300,000 YALE Valun Receivables Proparty, plant, and equi pment Intangible anneta 10,500,000 1,400,000 Required: Calculate the amount paid for goodwill. Goodwill
Chapter18: Corporations: Organization And Capital Structure
Section: Chapter Questions
Problem 1BCRQ
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![Johnson Corporation acquired all of the outstanding common stock of Smith Corporation for $12.200.000 in cash. The book valeof
Smith's net assets (assets minus liabilities) was $8,800.000. The fair values of all of Smith's assets and labiliies were equal to their
book values with the following exceptions:
hook Valum
$2,300,000
9,000,000
300,000
YAir Valun
2,000,000
10,500,000
1,400,000
Receivables
Property, plant, and equipment
Intangible aaneta
Required:
Calculate the amount paid for goodwill.
Goodwill](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fe1076520-7ccc-4628-b741-2dc05583b4d5%2F9e55e55c-bc7a-4805-a489-52d70eec07b2%2Fwyh0k7l_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Johnson Corporation acquired all of the outstanding common stock of Smith Corporation for $12.200.000 in cash. The book valeof
Smith's net assets (assets minus liabilities) was $8,800.000. The fair values of all of Smith's assets and labiliies were equal to their
book values with the following exceptions:
hook Valum
$2,300,000
9,000,000
300,000
YAir Valun
2,000,000
10,500,000
1,400,000
Receivables
Property, plant, and equipment
Intangible aaneta
Required:
Calculate the amount paid for goodwill.
Goodwill
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