Valix Finacc vol 1 Problem 20-22

Financial Accounting Volume 1 2008 Valix-Peralta
Chapter 20 Problem 20-22

1.  Acquisition cost                                                                                                      6,000,000

     Net assets acquired at fair value                                                                          (3,300,000)

     Goodwill                                                                                                                2,700,000

     Total assets at fair value                                                                                         5,300,000

     Total liabilities                                                                                                         2,000,000

     Net assets acquired at fair value                                                               3,300,000

              

2.  Cash                                                                                                 50,000

     Accounts receivable                                                                      500,000

     Inventory                                                                                      1,500,000

     Patent                                                                                            250,000

     Property, plant and equipment                                                   3,000,000

     Goodwill                                                                                      2,700,000           

            Accounts payable                                                                                           2,000,000

            Cash                                                                                                                6,000,000