Trident Corporation acquires Uvell Company's assets and liabilities for $40,000,000 in cash. At the date of acquisition, Uvell's balance sheet reported assets of $90,000,000 and liabilities of $82,000,000. Investigation reveals that Uvell's buildings are overvalued by $6,000,000 and it has unreported liabilities valued at $5,000,000. Trident reports how much goodwill on this acquisition?

Question

Quizplus · Accepted Answer

$40,000,000 - ($90,000,000 - $6,000,000 - $82,000,000 - $5,000,000) = $43,000,000

Trident Corporation Acquires Uvell Company's Assets and Liabilities for $40,000,000