Calculate the amount paid for goodwill


Mainline Produce Corporation acquired all the outstanding common stock of Iceberg Lettuce Corporation for $40,000,000 in cash. The book values and fair values of Iceberg's assets and liabilities were as follows:


Book Value Fair Value
Current assets $ 10,800,000    $ 13,800,000   
Property, plant, and equipment
25,800,000   
31,800,000   
Other assets
2,400,000   
3,400,000   
Current liabilities
6,800,000   
6,800,000   
Long-term liabilities
11,200,000   
10,200,000   

Required:

Calculate the amount paid for goodwill. (Enter your answer in millions.)

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Accounting Basics: Calculate the amount paid for goodwill
Reference No:- TGS0697375

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