Nancy howard owner of howard corporation is negotiating for, Ask an Expert

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Nancy Howard, owner of Howard Corporation, is negotiating for the purchase of Innovative Technology. The balance sheet of Innovative Technology has Cash of $40,000; Land of $100,000; Building of $250,000; Equipment of $142,000; Total Liabilities of $400,000. Both Howard Corporation and Innovative Technology agree that Land is undervalued by $20,000 and Equipment is overvalued by $7,000. Innovative Technology agrees to sell the company to Howard Corporation for $200,000. The amount of goodwill that should be recognized in the purchase of Innovative Technology will be which of the following:

$80,000

$75,000

$60,000

$55,000

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Financial Accounting, Accounting

Category:- Financial Accounting
Reference No.:- M91360149

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