Problem
Parent and Sub Inc. had the following balance sheets on December 31, 2021:
|
Parent
|
Sub
|
|
Current Assets
|
$ 65,000
|
$12,000
|
|
Fixed Assets (net)
|
$100,000
|
$61,000
|
|
Total Assets
|
$165,000
|
$73,000
|
|
Current Liabilities
|
$ 42,000
|
$35,000
|
|
Bonds Payable
|
$ 25,000
|
$12,000
|
|
Common Shares
|
$ 90,000
|
$12,000
|
|
Retained Earnings
|
$ 8,000
|
$14,000
|
|
Total Liabilities and Equity
|
$165,000
|
$73,000
|
On January 1, 2022, Parent acquired Sub by issuing $43,000 in common shares. On that date, Sub's fair value of Current Assets and Fixed Assets were worth $7,000 and $50,000, respectively. Further, on January 1, 2021, the fair value of Parent's Current and Fixed assets were worth $64,000 and $103,000 respectively.
Calculate goodwill on the date of acquisition.