Compute the amount of goodwill acquired by vinson

Assignment Help Financial Management
Reference no: EM132323091

Question

On July 1, 2017, Vinson Corporation acquired Carley Company for $900,000 cash. At the time of purchase, Carley's balance sheet showed assets of $775,000 and liabilities of $250,000. The fair value of Carley's assets is estimated to be $950,000.

Compute the amount of goodwill acquired by Vinson.

Amount of goodwill$

On December 31, the fair value of Carley is estimated to be $720,000 and the implied fair value of goodwill is $170,000. The carrying value of Carley's net assets, including the goodwill, at year-end is $750,000. Prepare Vinson's journal entry, if necessary, to record impairment of goodwill.

(Credit account titles are automatically indented when the amount is entered. Do not indent manually.)

Reference no: EM132323091

Questions Cloud

How much interest is recognized for the period from april 1 : Oriole Company borrowed $403000 on April 1. The note requires interest at 12% and principal to be paid in one year. How much interest is recognized?
What accounting recognition should be accorded the situation : The management of Marigold estimates that this recall would cost $792000. What accounting recognition, if any, should be accorded this situation?
Main challenge of nlp : One of the main challenge of NLP is: (a) Ambiguity of sentences (b) Handling tokenization (c) Usage of non-standard English (d) New senses of a words
Another function that prints them into main : Just a shot in the dark here, but I need help on an assignment in C that takes command line arguments and puts them into 2D arrays and sends
Compute the amount of goodwill acquired by vinson : On July 1, 2017, Vinson Corporation acquired Carley Company for $900,000 cash. At the time of purchase, Carley's balance sheet showed assets.
Customers relationship management : CRM (customers relationship management) defination related to digital bussiness Benefits Challenges
Describe a hypothetical situation : Provide a real-world example or describe a hypothetical situation in which a legitimate organization used spam in an effective
Company to increase programmer productivity : You were just hired by a company to increase programmer productivity. You review existing program code and notice that no specific naming convention
Prepare novaks journal entries to record the purchase : Novak Corporation purchases a patent from Wildhorse Company on January 1, 2017, for $76,000. The patent has a remaining legal life of 13 years.

Reviews

Write a Review

Financial Management Questions & Answers

  Calculate the annual equal amounts of deposits

Calculate the annual equal amounts of deposits.

  What portion of triathlon does dan have relative

what portion of the triathlon does Dan have a relative comparative advantage? Explain

  Constant growth valuation-estimated required rate of return

Woidtke Manufacturing's stock currently sells for $25 a share. The stock just paid a dividend of $3.50 a share (i.e., D0 = $3.50), and the dividend is expected to grow forever at a constant rate of 8% a year. What stock price is expected 1 year from ..

  Transactions will increase the company current ratio

XYZ healthcare organization had a current ratio of 1.40. Which of the following transactions will increase the company's current ratio ?

  Your maximum loss on this position equals

You purchase one July 120 call on MBI stock for a premium of $1.20 when the stock is priced at $122.50. Your maximum loss on this position equals:

  Consistent with maintaining target capital structure

What is the maximum capital budget that is consistent with maintaining the target capital structure?

  Considering the replacement of riveting machine

Tennessee River Shipyards is considering the replacement of an 8 year old riveting machine with a new one that will increase earnings before depreciation from $27,000 to $54,000 per year. The new machine will cost $82,500, and it will have an estimat..

  Bank account that offers the best effective rate of return

how much money would be in the bank account that offers the best effective rate of return after 25 years?

  Considering investing in new cane manufacturing machine

The Sisyphean Corporation is considering investing in a new cane manufacturing machine that has an estimated life of three years. The cost of the machine is $30,000 and the machine will be depreciated straight line over its three-year life to a resid..

  Acquaint with the financial markets products and services

After getting acquaint with the financial markets products and services, Celestila Moonn, an Global Affairs major student, decided to invest in mutual funds and hedge funds; Briefly discuss should Moonn make her investment decision based on her advis..

  Calculate effective interest rate

A firm pays a stated interest rate of 8.5% on a $550,000 loan for one year. Calculate the effective interest rate.

  Coupons payable semiannually is redeemable at maturity

A 9% bond with a 1,000 par values and coupons payable semiannually is redeemable at maturity for 1,100. At a purchase price P, the bond yields a nominal interest rate at 8%, compounded semiannually, and a present value of the redemption amount is 190..

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd