What will be the balance in consolidated goodwill

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Reference no: EM131570439

Problem - Bullen Inc. acquired 100% of the voting common stock if Vicker Inc. on January 1, 2018. The book value and fair value of Vicker's accounts on that date (prior to creating the combination) are as follows, along with the book value of Bullen's accounts:

 

Bullen Book Value

Vicker Book Value

Vicker Fair Value

Retained earnings, 1/1/20

$250,000

$240,000

 

Cash and receivables

170,000

70,000

$70,000

Inventory

230,000

170,000

210,000

Land

280,000

220,000

240,000

Buildings (net)

480,000

240,000

270,000

Equipment (net)

120,000

90,000

90,000

Liabilities

650,000

430,000

420,000

Common stock

360,000

80,000

 

Additional paid-in capital

20,000

40,000

 

1) Assume that Bullen paid a total of $480,000 in cash for all of the shares of Vicker. In addition, Bullen paid $35,000 for secretarial and management time allocated to the acquisition transaction. What will be the balance in consolidated goodwill?

2) Assume that Bullen issued 12,000 shares of common stock with a $5 par value and a $47 fair value for all of the outstanding stock of Vicker. What is the consolidated balance for Land as a result of this acquisition transaction?

Reference no: EM131570439

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