On January 1, P Corporation paid $1,600,000 for all the issued and outstanding common stock...
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Accounting
On January 1, P Corporation paid $1,600,000 for all the issued and outstanding common stock of S Inc., in a transaction properly accounted for as an acquisition. The book values and fair values of S's assets and liabilities on January 1 were as follows: Book Value Fair Value Cash $ 160,000 $160,000 Receivables (net) 180,000 180,000 Inventory 315,000 300,000 Plant and equipment 820,000 920,000 (net) Liabilities (350,000) (350,000) Net assets $1,125,000 $1,210,000 What is the amount of goodwill resulting from the business combination? None of these $475,000 $390,000 $85,000
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