Asked by Brandon Gaylord on Apr 25, 2024
Verified
Salem Co. had the following account balances as of December 1, 2020: Assume that Bellington paid cash of $2.8 million and no stock is issued. Also assume that $50,000 is paid in direct combination costs.Required:For Goodwill, determine what balance would be included in a December 1, 2020 consolidation as a result of the acquisition.
Direct Combination Costs
Expenses directly associated with the execution of a business combination, such as legal fees, consulting fees, and other administrative costs.
Goodwill
An intangible asset representing the future economic benefits arising from assets that are not capable of being individually identified and separately recognized.
Acquisition
The process of acquiring control over another corporation through purchase or stock exchange.
- Recognize and account for Goodwill and bargain purchases in acquisition transactions.
Verified Answer
Learning Objectives
- Recognize and account for Goodwill and bargain purchases in acquisition transactions.
Related questions
Goodwill Is Often Acquired as Part of a Business Combination ...
Which of the Following Statements Is True About a Bargain ...
Under Purchase Accounting,the Acquired Assets Must Be Written Up or ...
How Is Goodwill Accounted for Subsequent to Acquisition ...
On January 1,2019,Fall Corporation Acquired 100% of the Outstanding Voting ...