Homework: Week 6- Chapter 09 exercises Save Score: 0 of 1 pt 9 of 9 (3 complete)

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Homework: Week 6- Chapter 09 exercises Save Score: 0 of 1 pt 9 of 9 (3 complete) HW Score: 29.21%, 2.63 of 9 pts E10-26 (similar to) EQuestion Help Perkins has acquired several other companies. Assume that Perkins purchased Kelleher for $9,000,000 cash. The book value of Kelleher's assets is $12,000,000 (market value, $19,000,000), and it has liabilities of $14,000,000 (market value, $14,000,000) Requirements 1. Compute the cost of goodwill purchased by Perkins 2. Record the purchase of Kelleher by Perkins Requirement 1. Compute the cost of goodwill purchased by Perkins Purchase price to acquire Kelleher Market value of Kelleher's assets Less Market value of Kellehers liabilities Less: Market value of Kelleher's net assets Goodwill Enter any number in the edit fields and then click Check Answer Check Answer Clear All part

Explanation / Answer

1) Purchase price to acquire Kelleher 9000000 Market value of Kelleher's assets 19000000 Less: Market value of Kelleher's liabilities 14000000 Less: Market value of Kelleher's net assets 5000000 Goodwill 4000000 2) Assets (other than goodwill) 19000000 Goodwill 4000000 Liabilities 14000000 Cash 9000000

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