Quincy Corp., about to be liquidated, has the following amounts for its assets and liabilities:
The mortgage is secured by the land and building, and the note payable is secured by the equipment. Quincy expects that the expenses of administering the liquidation will total $40,000.
-Gongman Corp.owned the following assets when it came out of aChapter 11 bankruptcy: Gongman Corp.had a fresh start reorganization value of $1,000,000.What amount of goodwill should have been recognized in recording the reorganization?

Question

Quincy Corp., about to be liquidated, has the following amounts for its assets and liabilities:
  The mortgage is secured by the land and building, and the note payable is secured by the equipment. Quincy expects that the expenses of administering the liquidation will total $40,000.
-Gongman Corp.owned the following assets when it came out of aChapter 11 bankruptcy:  Gongman Corp.had a fresh start reorganization value of $1,000,000.What amount of goodwill should have been recognized in recording the reorganization?

Quizplus · Accepted Answer

The Answer of Quincy Corp., about to be liquidated, has the following amounts for its assets and liabilities:
  The mortgage is secured by the land and building, and the note payable is secured by the equipment. Quincy expects that the expenses of administering the liquidation will total $40,000.
-Gongman Corp.owned the following assets when it came out of aChapter 11 bankruptcy:  Gongman Corp.had a fresh start reorganization value of $1,000,000.What amount of goodwill should have been recognized in recording the reorganization?