On January 1, 2017, Danner Company purchased all of the assets and assumed all of the liabilities of Clancy Company for cash of $80,000. Clancy's balance sheet showed total assets of $120,000 and total liabilities of $70,000. The equipment had a fair market value on the same date of $10,000 instead of the $6,000 reported on the balance sheet. Calculate goodwill in connection with this business combination. Prepare the journal entry to record the combination.

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The Answer of On January 1, 2017, Danner Company purchased all of the assets and assumed all of the liabilities of Clancy Company for cash of $80,000. Clancy's balance sheet showed total assets of $120,000 and total liabilities of $70,000. The equipment had a fair market value on the same date of $10,000 instead of the $6,000 reported on the balance sheet. Calculate goodwill in connection with this business combination. Prepare the journal entry to record the combination.

On January 1, 2017, Danner Company Purchased All of the Assets