Jackson Company acquires 100% of the stock of Clark Corporation on January 1, 2020, for $4,100 cash. As of that date Clark has the following trial balance: Net income and dividends reported by Clark for 2020 and 2021 follow:
The fair value of Clark's net assets that differ from their book values are listed below:
Any excess of consideration transferred over fair value of net assets acquired is considered goodwill with an indefinite life.Compute goodwill, if any, at January 1, 2020.

Question

Jackson Company acquires 100% of the stock of Clark Corporation on January 1, 2020, for $4,100 cash. As of that date Clark has the following trial balance:  Net income and dividends reported by Clark for 2020 and 2021 follow:
 The fair value of Clark's net assets that differ from their book values are listed below:
 Any excess of consideration transferred over fair value of net assets acquired is considered goodwill with an indefinite life.Compute goodwill, if any, at January 1, 2020.

Quizplus · Accepted Answer

The Answer of Jackson Company acquires 100% of the stock of Clark Corporation on January 1, 2020, for $4,100 cash. As of that date Clark has the following trial balance:  Net income and dividends reported by Clark for 2020 and 2021 follow:
 The fair value of Clark's net assets that differ from their book values are listed below:
 Any excess of consideration transferred over fair value of net assets acquired is considered goodwill with an indefinite life.Compute goodwill, if any, at January 1, 2020.

Jackson Company Acquires 100% of the Stock of Clark Corporation