Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Accounting Basics Expert

On January 1, Richard Company acquired all the net assets of Ulmer Company by issuing bonds with a face value and fair value of $500,000 and cash of $300,000. The fair values of Ulmer's identifiable net assets equaled their book values, except for buildings and equipment, which had a fair value of $120,000 greater than book value. Balance sheets for the two companies immediately preceding the acquisition were as follows:

Richard Co. Ulmer Co.
Cash $400.000 $150,000
Buildings & Equipment $700,000 $400,000
Accumulated Depreciation $(300,000) $(150,000)
Other Identifiable Assets $100,000 $200,000
Total Assets $900,000 $600,000

Liabilities $200,000 $100,000
Common Stock $400.000 $300,000
Additional Paid-In Capital $160,000 $100,000
Retained Earnings $140,000 $100,000
Total Liabilities and Equity $900,000 $600,000

Based on the information given above, the amount of Goodwill to be recognized in connection with the merger is:

A. 0
B. $180,000
C. $200,000
D. $300,000

Accounting Basics, Accounting

  • Category:- Accounting Basics
  • Reference No.:- M944002

Have any Question? 


Related Questions in Accounting Basics

Question part one what are the differences between a direct

QUESTION PART ONE: What are the differences between a direct cost and an indirect cost? Which is the more difficult cost to track? Why? How do indirect costs affect the cost of a product? Should indirect costs be include ...

Bull what are some steps taken by both the fasb and iasb to

• What are some steps taken by both the FASB and IASB to move to fair value measurement for financial instruments? In what ways have some of the approaches differed? • IFRS 9-1: What is component depreciation, and when m ...

Francis moved in with her mother beatrice when beatrices

Francis moved in with her mother, Beatrice, when Beatrice's health started to fail. Francis cared for her mother as a devoted child and never expected anything in return. When Beatrice needed to move to a nursing home, s ...

For an accounts receivable system what kind of data would

For an accounts receivable system, what kind of data would be found in the master files and transaction files, respectively?

Accounting concepts and practices assignment-you are an

Accounting Concepts and Practices Assignment- You are an accountant at WCP Accountants & Investment Advisers. You have been approached by a client for your professional advice on investing in Woolworths Ltd. Your client ...

Legal regulation of business structures assignment-

LEGAL REGULATION OF BUSINESS STRUCTURES ASSIGNMENT- QUESTION Dr Dawes declared personal bankruptcy on 28 February 2016 and he remains un-discharged.  He informed the board of GML (refer to the facts of this company in yo ...

Following is the current balance sheet for a local

Following is the current balance sheet for a local partnership of doctors: Cash and current assets $ 50,000Liabilities $ 90,000 Land 290,000 A, capital 70,000 Building and equipment (net) 220,000 B, capital 90,000 C, cap ...

A taxpayer lives in michigan in a controversy with the irs

A taxpayer lives in Michigan. In a controversy with the IRS, the taxpayer loses at the trial court level. Describe the appeal procedure for each of the following trial courts: a. Small Cases Division of the U.S. Tax Cour ...

You have been diligently saving to buy a boat for the last

You have been diligently saving to buy a boat. For the last 10 years, you have been putting $50 per month into a secret savings account paying .5% interest per year. You started with $0. You just discovered that your spo ...

Use the following transactions and additional information

Use the following TRANSACTIONS AND ADDITIONAL INFORMATION to complete the General Journal Entries, Ledger, Worksheet and Financial Statements for the first of the month of operations for The Golf Club. PERPETUAL INVENTOR ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

A cola-dispensing machine is set to dispense 9 ounces of

A cola-dispensing machine is set to dispense 9 ounces of cola per cup, with a standard deviation of 1.0 ounce. The manuf

What is marketingbullwhat is marketing think back to your

What is Marketing? • "What is marketing"? Think back to your impressions before you started this class versus how you

Question -your client david smith runs a small it

QUESTION - Your client, David Smith runs a small IT consulting business specialising in computer software and techno

Inspection of a random sample of 22 aircraft showed that 15

Inspection of a random sample of 22 aircraft showed that 15 needed repairs to fix a wiring problem that might compromise

Effective hrmquestionhow can an effective hrm system help

Effective HRM Question How can an effective HRM system help facilitate the achievement of an organization's strate