Turner has £4.2 million in net working capital.The ﬁrm has ﬁxed assets with a book value of £48.6 million and a market value of £53.4 million.Martin & Sons is buying Turner for £60 million in cash.
The acquisition will be recorded using the purchase accounting method.What is the amount of
Goodwill that Martin & Sons will record on its balance sheet as a result of this acquisition?
A)£0
B)£2.4 million
C)£6.6 million
D)£7.2 million
E)£11.4 million

Question

Quizplus · Accepted Answer

The Answer of Turner has £4.2 million in net working capital.The ﬁrm has ﬁxed assets with a book value of £48.6 million and a market value of £53.4 million.Martin & Sons is buying Turner for £60 million in cash.
The acquisition will be recorded using the purchase accounting method.What is the amount of
Goodwill that Martin & Sons will record on its balance sheet as a result of this acquisition?
A)£0
B)£2.4 million
C)£6.6 million
D)£7.2 million
E)£11.4 million

Turner Has £4