Please help me find the Inventory, Buildings and equipment and Goodwill. Thank y

Question

Please help me find the Inventory, Buildings and equipment and Goodwill. Thank you.

14.29 points On June 10, 20X8, Tower Corporation acquired 100 percent of Brown Company's common stock. Summarized balance sheet data for the two companies immediately after the stock acquisition are as follows: Tower Corp Brown Company Book Value Fair Value S 19.000 9,000 9,000 11,000 32,000 90,000 Item Cash Accounts Receivable Inventory Buildings & Equipment (net) Investment in Brown Stock 31,000 91,000 132,000 142,000 11,000 27,000 70,000 Total $415,000 117,000 $142,000 $ 11,000 S 5,000 15,000 10,000 87,000 5,000 15,000 Accounts Payable Bonds Payable Common Stock Retained Eanings 149,000 47,000 208,000 Tota $415,000 117,000 S 20,000 Type here to search

Explanation / Answer

Excess Value (Differential) Calculations = $142,000 (purchased price given in Balance sheet) - $97,000 Investment in Brown co. = $45,000
Inventory = $32,000 - $27,000 = $5000
Buildings and equipment = $90,000 - $70,000 = $20,000
Goodwill = $45,000 - $5000(Inventory) - $20,000(Building & Equipment) = $20,000

Related Questions

Navigate

• Browse (All)
• Browse P
• Subjects

---

---

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