On June 1, Cline Co. paid $911,000 cash for all of the issued and outstanding common stock of Renn Corp. The carrying values for Renn's assets and liabilities on June 1 follow:
Cash $ 161,000
Accounts receivable 194,000
Capitalized software costs 345,000
Liabilities (159,000 )
Net assets $ 709,000
Note: Parentheses indicate a credit balance.
On June 1, Renn's accounts receivable had a fair value of $143,000. Additionally, Renn's in-process research and development was estimated to have a fair value of $264,000. All other items were stated at their fair values. On Cline's June 1 consolidated balance sheet, how much is reported for goodwill?
On May 1, Donovan Company reported the following account balances:
Current assets $ 127,500
Buildings & equipment (net) 252,500
Total assets $ 380,000
Liabilities $ 103,500
Common stock 150,000
Retained earnings 126,500
Total liabilities and equities $380,000