Balance sheet information for Hope Corporation at January 1,2016,is summarized as follows:
Hope's assets and liabilities are fairly valued except for plant assets that are undervalued by $200,000.On January 2,2016,Robin Corporation issues 80,000 shares of its $10 par value common stock for all of Hope's net assets and Hope is dissolved.Market quotations for the two stocks on this date are:
Robin pays the following fees and costs in connection with the combination:
Required:
A.Calculate Robin's investment cost of Hope Corporation.
B.Calculate any goodwill from the business combination.

Question

Balance sheet information for Hope Corporation at January 1,2016,is summarized as follows:
  Hope's assets and liabilities are fairly valued except for plant assets that are undervalued by $200,000.On January 2,2016,Robin Corporation issues 80,000 shares of its $10 par value common stock for all of Hope's net assets and Hope is dissolved.Market quotations for the two stocks on this date are:
  Robin pays the following fees and costs in connection with the combination:
  Required:
A.Calculate Robin's investment cost of Hope Corporation.
B.Calculate any goodwill from the business combination.

Quizplus · Accepted Answer

The Answer of Balance sheet information for Hope Corporation at January 1,2016,is summarized as follows:
  Hope's assets and liabilities are fairly valued except for plant assets that are undervalued by $200,000.On January 2,2016,Robin Corporation issues 80,000 shares of its $10 par value common stock for all of Hope's net assets and Hope is dissolved.Market quotations for the two stocks on this date are:
  Robin pays the following fees and costs in connection with the combination:
  Required:
A.Calculate Robin's investment cost of Hope Corporation.
B.Calculate any goodwill from the business combination.

Balance Sheet Information for Hope Corporation at January 1,2016,is Summarized