What is the amount of goodwill resulting from the business

Assignment Help Finance Basics
Reference no: EM131132473

On April 1, 20X1, Paape Company paid $950,000 for all the issued and outstanding stock of Simon Corporation. The recorded assets and liabilities of the Simon Corporation on April 1, 20X1, follow:

Cash .......................................... $ 80,000

Inventory ..................................... 240,000

Property and equipment (net of accumulated depreciation of $320,000) .......480, 000

Liabilities ...............................(180,000)

On April 1, 20X1, it was determined that the inventory of Simon had a fair value of $190,000, and the property and equipment (net) had a fair value of $560,000.

What is the amount of goodwill resulting from the business combination? (Points: 10) 

$0 $120,000 $300,000 $230,000

Reference no: EM131132473

Questions Cloud

What were their explanations for why their study was needed : In the space below, list the data analyses used to analyze the data gathered during the article authors' study. Note: You don't have to know how the analyses are conducted; only naming them is required here.
What is meant by an efficient security market : What is meant by an efficient security market? There are various views that are put forward in the paper which point to a common idea of market efficiency. Elaborate on these views. Explain how is the efficient market hypothesis associated with th..
Form of economic regulation or social regulation : Based on your answer to this question, should government regulatory activities designed to reduce the scope of lemons problems take the form of economic regulation or social regulation? Take a stand, and support your reasoning.
Calculate by hand a regression of the data for p : Calculate by hand a regression of the data for p on the data for e in Exercise 1.3, first using all 12 observations, then excluding the observation for Japan, and provide an economic interpretation.
What is the amount of goodwill resulting from the business : On April 1, 20X1, it was determined that the inventory of Simon had a fair value of $190,000, and the property and equipment (net) had a fair value of $560,000. What is the amount of goodwill resulting from the business combination?
Why would a reader be interested in the larger work : What is the importance of the research? What changes should be implemented as a result of the findings of the work? Why would a reader be interested in the larger work?
Define the class of linear estimators : Let Y1, Y2,...,Yn be n i.i.d. random variables with common mean µ and common variance σ2. Let Y¯ denote the sample average. Define the class of linear estimators of µ
What is the marginal revenue of the 101st pound of heirloom : What is the marginal revenue of the 101st pound of heirloom tomatoes?
Prepare a balance sheet for the bank : What is the maximum amount by which the money supply can be increased as a result of First Bank's new loan?

Reviews

Write a Review

Finance Basics Questions & Answers

  What type of investments should you seek

As an investor desiring a diversified portfolio, what type of investments should you seek? Should you seek ones with a positive or negative correlation? Please discuss and provide specific examples.

  Project z costs 15000 and has a cash flow of 4500 per year

project z costs 15000 and has a cash flow of 4500 per year for 5 years. mutually exclusive project m costs 37500 and

  The connors companys last dividend was 100 its dividend

the connors companys last dividend was 1.00. its dividend growth rate is expected to be constant at 15 for 2 years

  Napredna tehnologijaestimates the following data for the

napredna tehnologijaestimates the following data for the coming year. if the firm follows the residual dividend model

  Find correct statement regarding 401(k) plan

Determine the correct statement regarding 401(k) plan.

  How could other companies use these it solutions

Have you experienced a company using any of these technologies? Can you think of a company you have done business with recently that could have used such technology? How did it affect your experience? Give examples.

  Why are municipal bonds exempt from federal tax

Why are municipal bonds exempt from federal tax? What happends if they were not?

  What is the year-end 2012 balance in accounts

Mr. Husker's Tuxedos Corp. ended the year 2012 with an average collection period of 42 days. The firm's credit sales for 2012 were $57.1 million. What is the year-end 2012 balance in accounts receivable for Mr. Husker's Tuxedos?

  Coefficient of variation metal manufacturing has isolated

coefficient of variation metal manufacturing has isolated four alternatives for meeting its need for increased

  Determine the deposit at the end of each month

You would like to have $1,000,000 in 33 years by making regular deposits at the end of each month in an annuity that pays 7% compounded monthly. Determine the deposit at the end of each month.

  Harriet''s suggestion of using the cost of debt

1. What is your reaction to Harriet's suggestion of using the cost of debt only? Is it a good idea or a bad idea? Why?

  Describe the logic underlying the use of target

Describe the logic underlying the use of target weights to calculate the WACC, and compare and contrast this approach with the use of historical weights. What is the preferred weighting scheme?

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