Advanced Accounting 5th ed ch2 solutions(5)

$700,000$20,000

Total shares issued = 144,000

$5$5

Fair value of stock issued (144,000 $15) = $2,160,000

Cost (Purchase Price)

Less: Fair Value of Net Assets Goodwill

$130,000 $ 10,000 $110,000 $ 20,000 $15,000 ($ 5,000)

Assets 30,000 20,000

Cost (Purchase Price)

Less: Fair Value of Net Assets Goodwill

Cost (Purchase Price)

Less: Fair Value of Net Assets Gain

Case A Case B Case C

20,000

80,000 40,000

Liabilities 20,000 40,000 Retained Earnings (Gain)

0 5,000

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