Perry Company acquires 100% of the stock of Hurley Corporation on January 1, 2012, for $3,800 cash. As of that date Hurley has the following trial balance; Any excess of consideration transferred over fair value of net assets acquired is considered goodwill with an indefinite life. FIFO inventory valuation method is used.
Compute goodwill, if any, at January 1, 2012.

Question

Perry Company acquires 100% of the stock of Hurley Corporation on January 1, 2012, for $3,800 cash. As of that date Hurley has the following trial balance;  Any excess of consideration transferred over fair value of net assets acquired is considered goodwill with an indefinite life. FIFO inventory valuation method is used.
Compute goodwill, if any, at January 1, 2012.

Quizplus · Accepted Answer

Identified BVs $2,950 - Identified FVs $3,100 = $150 Excess Unidentified (Goodwill)

Perry Company Acquires 100% of the Stock of Hurley Corporation