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Financial accounting 16th Edition by Jan Williams,Susan Haka,Mark Bettner ,Joseph Carcello
Edition 16ISBN: 978-0077862381Financial accounting 16th Edition by Jan Williams,Susan Haka,Mark Bettner ,Joseph Carcello
Edition 16ISBN: 978-0077862381 Exercise 3
Goodwill
Hunt Company is considering purchasing a competing company in order to expand its market share.stimates of the excess of the value of the individual assets, less liabilities to be assumed, range from $50,000 to $60,000, depending on the manner in which that excess is calculated.unt believes it can purchase the competitor for a direct cash outlay of $700,000, which is only $25,000 more than the value of the individual assets less the liabilities that Hunt will assume.ssuming Hunt makes the purchase for $700,000 at what amount should goodwill be recorded Briefly explain your answer.
Hunt Company is considering purchasing a competing company in order to expand its market share.stimates of the excess of the value of the individual assets, less liabilities to be assumed, range from $50,000 to $60,000, depending on the manner in which that excess is calculated.unt believes it can purchase the competitor for a direct cash outlay of $700,000, which is only $25,000 more than the value of the individual assets less the liabilities that Hunt will assume.ssuming Hunt makes the purchase for $700,000 at what amount should goodwill be recorded Briefly explain your answer.
Explanation
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Goodwill should be recorded at $25,000, ...
Financial accounting 16th Edition by Jan Williams,Susan Haka,Mark Bettner ,Joseph Carcello
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