Mainline Produce Corporation acquired all the outstanding common stock of Iceberg Lettuce Corporation for $44,000,000 in cash. The book values and fair values of Iceberg's assets and liabilities were as follows: Current assets Property, plant, and equipment Other assets Current liabilities Long-term liabilities Required: Book Value $ 16,000,000 30,800,000 Fair Value $ 19,000,000 36,800,000 5,200,000 6,200,000 9,600,000 9,600,000 16,400,000 15,400,000 Calculate the amount paid for goodwill. (Enter your answer in millions (i.e. 5,000,000 should be entered as 5).) Amount paid for goodwill million

Mainline Produce Corporation acquired all the outstanding common stock of Iceberg Lettuce Corporation for $44,000,000 in cash. The book values and fair values of Iceberg's assets and liabilities were as follows: Current assets Property, plant, and equipment Other assets Current liabilities Long-term liabilities Required: Book Value $ 16,000,000 30,800,000 Fair Value $ 19,000,000 36,800,000 5,200,000 6,200,000 9,600,000 9,600,000 16,400,000 15,400,000 Calculate the amount paid for goodwill. (Enter your answer in millions (i.e. 5,000,000 should be entered as 5).) Amount paid for goodwill million

Financial Accounting: The Impact on Decision Makers

10th Edition

ISBN:9781305654174

Author:Gary A. Porter, Curtis L. Norton

Publisher:Gary A. Porter, Curtis L. Norton

Chapter8: Operating Assets: Property, Plant, And Equipment, And Intangibles

Section: Chapter Questions

Problem 8.1AP

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5 Company A acquired all of the outstanding common stock of Company B for $19,000,000 in cash. The book values and fair values of Company B's assets and liabilities were as follows: Current assets Property, plant, and equipment Other assets Current liabilities Long-term liabilities Required: Calculate the amount paid for goodwill. Goodwill Book Value $ 8,000,000 13,000,000 1,200,000 6,000,000 8,000,000 Fair Value $9,500,000 16,000,000 1,700,000 6,000,000 7,500,000
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