Solution-What amount should trudata report as goodwill

What amount should trudata report as goodwill

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Reference no: EM131770652

Use the following information to answer questions 15-16

The following information applies to the questions displayed below.On July 1, TruData Company issues 10,800 shares of its common stock with a $5 par value and a $42 fair value in exchange for all of Webstat Company's outstanding voting shares. Webstat's precombination book and fair values are shown below along with book values for TruData's accounts.

	TruData	Webstat	Webstat
	Book Values	Book Values	Fair Values
Revenues (1/1 to 7/1)	$(257,250)	$(137,000)
Expenses (1/1 to 7/1)	188,500	96,500
Retained earnings, 1/1	(134,000)	(150,500)
Cash and receivables	136,500	42,000	$ 42,000
Inventory	201,500	150,000	186,000
Patented technology (net)	249,750	127,000	163,400
Land	411,750	248,500	286,900
Buildings and equipment (net)	111,750	95,250	95,250
Liabilities	(598,500)	(371,750)	(351,550)
Common stock	(300,000)	(70,000)
Additional paid-in capital	(10,000)	(30,000)

1. On its acquisition-date consolidated balance sheet, what amount should TruData report as goodwill?

$0.
$31,600.
$55,300.
$120,300

Reference no: EM131770652

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What amount should trudata report as goodwill

Reference no: EM131770652

Reference no: EM131770652

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