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.

Question

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.

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The Answer of 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.

Salem Co Had the Following Account Balances as of December 1