Plant and equipment exceeded its carrying amount

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Reference no: EM13746479

On June 30, year 1, ABC Co. purchased for cash at $20 per share all 300,000 shares of the outstanding common stock of DEF Co. At June 30, year 1, ABC’s balance sheet showed a carrying amount of net assets of $2,000,000. At that date, the fair value of DEF’s property, plant and equipment exceeded its carrying amount by $500,000. In its June 30, year 1 consolidated balance sheet, what amount should ABC report as goodwill?

Reference no: EM13746479

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