Asked by
Alexandre Oliveira
on Dec 05, 2024
Verified
During 2019,Manning Corporation purchased 100% of the outstanding voting common stock shares of Brady Corporation for $4.0 million.Brady's assets had a book value of $5.0 million and fair value of $6.5 million.The book value as well as fair value of Brady's liabilities equaled $3.2 million.How much was paid for goodwill?
A) $0.
B) $2,200,000.
C) $700,000.
D) $1,000,000.
Goodwill
An intangible asset that arises when a company acquires another business for more than the fair value of its identifiable tangible and intangible assets.
Voting Common Stock
Equity shares that give shareholders the right to vote on corporate policies and board of director elections.
- Understand and calculate goodwill in business acquisition scenarios.
Verified Answer
DF
Learning Objectives
- Understand and calculate goodwill in business acquisition scenarios.
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