Check my work Required Information The following Information applies to the questions displayed below.) Assume...
70.2K
Verified Solution
Link Copied!
Question
Accounting
Check my work Required Information The following Information applies to the questions displayed below.) Assume that Gold Software acquired Torque Technologies at the end of 2017. This acquisition was accomhed by paying a total of $700,000 in cash to acquire all 25 thousand shares of Torque's outstanding common stoc am 's shareholders. This purchase price of $28 per share represented a 40% premium over Torque's share orice mes prior to the acquisition Below is information on the fair market value (at the time of the acquisition) and historical cost (as listed on Torque's pre- acquisition balance sheet) for all of the separately identifiable assets and linbilities acquired from Torque: Account Name Inventory Intangible Assets Property. Plant, and Equipment Current Liabilities Notes Payable Historical Cost (on Torque's Fair Market Value Pre-Acquisition Balance Sheet) $ 10,000 $ 8,000 $ 350,000 $0 $ 100,000 $ 85,000 $ 20,000 $ 20,000 $ 150,000 $ 150,000 Calculate the amount of goodwill that would be recorded by Bold for this acquisition
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Zin AI - Your personal assistant for all your inquiries!
