Webber Ltd. purchased the net assets of Sitter Inc. in January 2020 for $9,390,000. Appraisals...
60.1K
Verified Solution
Link Copied!
Question
Accounting
Webber Ltd. purchased the net assets of Sitter Inc. in January 2020 for $9,390,000. Appraisals indicated that the fair values of the assets purchased and liabilities assumed were as follows: Land Inventory Accounts receivable Prepaid expenses Equipment Building $1,009,000 570,000 71,000 1,857,000 1,667,000 Patents Accounts payable Warranty provision Bank loan payable $1,743,000 1,286,000 645,000 478,000 1,926,000 The patent acquired has 10 years remaining in its useful life, but Webber's management determined that it would contribute to the generation of revenues for 8 years, after which it would be obsolete. (a) Determine the amount of goodwill Webber acquired in the purchase. Goodwill $Enter a dollar amount of goodwill
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: Flex AI - Your personal assistant for all your inquiries!
