On January 1, 2016, Red Company purchased Patriot Shop for $400,000 cash in a merger transaction. Red Company received the assets listed below and assumed accounts payable owed by Patriot to its suppliers in the amount of $30,000. What amount of goodwill will be recorded in the transaction?

Question

On January 1, 2016, Red Company purchased Patriot Shop for $400,000 cash in a merger transaction. Red Company received the assets listed below and assumed accounts payable owed by Patriot to its suppliers in the amount of $30,000.  What amount of goodwill will be recorded in the transaction?

Quizplus · Accepted Answer

The Answer of On January 1, 2016, Red Company purchased Patriot Shop for $400,000 cash in a merger transaction. Red Company received the assets listed below and assumed accounts payable owed by Patriot to its suppliers in the amount of $30,000.  What amount of goodwill will be recorded in the transaction?

On January 1, 2016, Red Company Purchased Patriot Shop for $400,000