Salem Co. had the following account balances as of December 1, 2020: Bellington Inc. transferred $1.7 million in cash and 12,000 shares of its newly issued $30 par value common stock (valued at $90 per share) to acquire all of Salem's outstanding common stock. Determine the balance for Goodwill that would be included in a December 1, 2020, consolidation as a result of the acquisition.

Question

Salem Co. had the following account balances as of December 1, 2020:  Bellington Inc. transferred $1.7 million in cash and 12,000 shares of its newly issued $30 par value common stock (valued at $90 per share) to acquire all of Salem's outstanding common stock. Determine the balance for Goodwill that would be included in a December 1, 2020, consolidation as a result of the acquisition.

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The Answer of Salem Co. had the following account balances as of December 1, 2020:  Bellington Inc. transferred $1.7 million in cash and 12,000 shares of its newly issued $30 par value common stock (valued at $90 per share) to acquire all of Salem's outstanding common stock. Determine the balance for Goodwill that would be included in a December 1, 2020, consolidation as a result of the acquisition.

Salem Co Had the Following Account Balances as of December 1