Fresh Cut Corporation purchased all the outstanding common stock of Premium Meats for $10,100,000 in...
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Accounting
Fresh Cut Corporation purchased all the outstanding common stock of Premium Meats for $10,100,000 in cash. The book values and fair values of Premium Meats' assets and liabilities were:
Book Value
Fair Value
Accounts Receivable
$
850,000
$
650,000
Equipment
7,550,000
8,950,000
Patent
110,000
750,000
Notes Payable
(800,000)
(800,000)
Net assets
$
7,710,000
$
9,550,000
Required:
1. Calculate the amount Fresh Cut should report for goodwill. (Enter your answer in millions rounded to 2 decimal places (i.e., $5,500,000 should be entered as 5.50).)
2. Record Fresh Cut's acquisition of Premium Meats. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.Enter your answers in millions rounded to 2 decimal places (i.e., 5,550,000 should be entered as 5.55).)
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