Asked by Edgar Quinones on Apr 27, 2024
Verified
On January 1,2019,Fall Corporation acquired 100% of the outstanding voting shares of Foliage Corporation for $600,000.The book and fair values of Foliage's assets and liabilities as of January 1,2019 are listed below:
What amount of goodwill,if any,will be recorded by Fall Corporation as a result of this investment?
Goodwill
An intangible asset that arises when a company acquires another business for more than the value of its tangible and identifiable intangible assets.
Outstanding Voting Shares
The total number of shares of a corporation's stock that are currently owned by shareholders and have the right to vote.
Fair Value
An estimate of the price at which an asset or liability could be traded in a fair transaction between willing parties, neither under compulsion to act.
- Comprehend and compute goodwill during business acquisition instances.
Verified Answer
JD
Learning Objectives
- Comprehend and compute goodwill during business acquisition instances.