Valix Finacc vol 1 Problem 20-21

Financial Accounting Volume 1 2008 Valix-Peralta
Chapter 20 Problem 20-21

1.  Acquisition cost                                                                                                      7,500,000

     Net assets acquired                                                                                               (4,600,000)

     Goodwill                                                                                                                2,900,000

2.  Cash                                                                                                  50,000

     Accounts receivable                                                                      800,000

     Inventory                                                                                      1,350,000

     Property, plant and equipment                                                   4,300,000

     Goodwill                                                                                      2,900,000

            Accounts payable                                                                                              900,000

            Note payable – bank                                                                          1,000,000

            Cash                                                                                                                7,500,000