Compute amount of goodwill on date of purchase


a. Nimbus Inc bought certain assets under deferred payment contract. Agreement was to pay $30,000 per year for 10 years. plant assets must be valued at?

b. On June 30, 2007 Hi-tech Inc bought for cash at $50 per share all 150,000 shares of outstanding common stock of Ski Craft Company. Ski craft balance sheet at June 30, 2007 illustrated net assets with a book value of $6,000,000. Fair value of ski craft property, plant and equipment on June 30, 2007 was $800.000 in excess of its book value. Compute amount if any will Hi-Tech record as goodwill on date of purchase?

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Accounting Basics: Compute amount of goodwill on date of purchase
Reference No:- TGS022587

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