Simple value analysis. Flom Company is considering the cash purchase of 100% of the outstanding stock of Vargas Company. The terms are not set, and alternative prices are being considered for negotiation. The balance sheet of Vargas Company shows the following values: 11eb5b63_5635_3703_bcf8_6f93d18658bd_SM1534_00 Appraisals reveal that the inventory has a fair value of $160,000 and that the land and building have fair values of $120,000 and $300,000, respectively. 1. Above what price will goodwill be recorded? 2. Below what price will a gain be recorded?

Advanced Accounting 11th Edition by Paul Fischer,William Tayler, Rita Cheng

النسخة 11الرقم المعياري الدولي: 978-0538480284

Advanced Accounting 11th Edition by Paul Fischer,William Tayler, Rita Cheng

النسخة 11الرقم المعياري الدولي: 978-0538480284

تمرين 7

Simple value analysis. Flom Company is considering the cash purchase of 100% of the outstanding stock of Vargas Company. The terms are not set, and alternative prices are being considered for negotiation. The balance sheet of Vargas Company shows the following values:

Appraisals reveal that the inventory has a fair value of $160,000 and that the land and building have fair values of $120,000 and $300,000, respectively.
1. Above what price will goodwill be recorded?
2. Below what price will a gain be recorded?

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موثّق

Calculate net increase in land value.
It...