The financial balances for the Atwood Company and the Franz Company as of Decemb

Question

The financial balances for the Atwood Company and the Franz Company as of December 31, 20X1, are presented below. Also included are the fair values for Franz Company's net assets.

Note: Parenthesis indicate a credit balance

Assume an acquisition business combination took place at December 31, 20X1. Atwood issued 50 shares of its common stock with a fair value of $35 per share for all of the outstanding common shares of Franz. Stock issuance costs of $15 (in thousands) and direct costs of $10 (in thousands) were paid.

Compute consolidated goodwill at the date of the acquisition.

$360.

$450.

$460.

$440.

$475.

$360.

$450.

$460.

$440.

$475.

Explanation / Answer

$450

Differnece of assets 280 (net increase ) and increase in liabilities 100 = 180

paid 50*35 = 1750 less 1,080 + 40 net income - 180 = $450

Related Questions

Navigate

• Browse (All)
• Browse T
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.