Northern Equipment Corporation purchased all outstanding common stock of Pioneer Equipment Rental for $5,500,000 in cash. The book value of Pioneer's net assets was $3,900,000, but the fair value was $5,000,000. To calculate the goodwill paid, subtract the fair value of net assets from the purchase price, which is $5,500,000 - $5,000,000 = $500,000 of goodwill.
Northern Equipment Corporation purchased all outstanding common stock of Pioneer Equipment Rental for $5,500,000 in cash. The book value of Pioneer's net assets was $3,900,000, but the fair value was $5,000,000. To calculate the goodwill paid, subtract the fair value of net assets from the purchase price, which is $5,500,000 - $5,000,000 = $500,000 of goodwill.
Northern Equipment Corporation purchased all outstanding common stock of Pioneer Equipment Rental for $5,500,000 in cash. The book value of Pioneer's net assets was $3,900,000, but the fair value was $5,000,000. To calculate the goodwill paid, subtract the fair value of net assets from the purchase price, which is $5,500,000 - $5,000,000 = $500,000 of goodwill.
Northern Equipment Corporation purchased all the outstanding common stock of Pioneer Equipment Rental for $5,500,000 in cash. The book value of Pioneer's net assets (assets minus liabilities) was $3,900,000. The book values and fair values of Pioneer's assets and liabilities were:.............................................Book Value .................Fair ValueReceivables ..................................$ 650,000 ..................$ 550,000Property, plant, and equipment ............4,000,000..................4,700,000Intangible assets ...............................100,000 ....................600,000Liabilities ......................................(850,000) ..................(850,000)Net assets ....................................$3,900,000............... $5,000,000Required:1. Calculate the amount paid for goodwill.2. Record Northern Equipment's acquisition of Pioneer Equipment Rental.View Solution: Northern Equipment Corporation purchased all the outstanding common stock of SOLUTION-- http://solutiondone.online/downloads/northern-equipment-corporation-purchased- all-the-outstanding-common-stock-of/