E 10-6 Goodwill LO10-1Prepare a summary journal entry to record the $107,000 in cash expenditures. On March 31, 2013, Wolfson Corporation acquired all of the outstanding common stock of Barney Corporation for $17,000,000 in cash. The book values and fair values of Barney’s assets and liabilities as follows:
Book Value Fair Value
Current assets $6,000,000 $7,500,000 PPE 11,000,000 14,000,000
Other Assets 1,000,000 1,500,000 Current Liabilities4,000,000 4,000,000
L-Tliabilities 6,000,000 5,500,000
Required: Calculate the amount paid for goodwill.
- Required: Calculate the amount paid for goodwill. Fair value of consideration exchanged $17,000,000 Less: Fair Value of
- net assets acquired Assets $23,000,000 Less: Fair value of liabilities assumed (9,500,000) (13,500,000) Goodwill $3,500,000