On June 1, Cline Co. paid $1,049,000 cash for all of the issued and outstanding

Question

On June 1, Cline Co. paid $1,049,000 cash for all of the issued and outstanding common stock of Renn Corp. The carrying amounts for Renn's assets and liabilities on June 1 follow: 246,000 259,000 323,000 158,000 145,000) 841,000 Cash Accounts receivable Capitalized software costs 10 points 12 Goodwill Liabilities Skipped Net assets eBook On June 1, Renn's accounts receivable had a fair value of $193,000. Additionally, Renn's in-process research and development was estimated to have a fair value of $242,000. All other items were stated at their fair values. On Cline's June 1 consolidated balance sheet, how much is reported for goodwill?

Explanation / Answer

Total Considration paid 1049000 Less: Fair value of net assets: Cash 246000 Accounts receivable 193000 Capitalized softwarre ccost 323000 Research and de. Work 242000 Total Assets at fair value 1004000 Less: Liabilities 145000 859000 Goodwill 190000

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