Solved: Calculating the amount paid for goodwill, Accounting Basics

+44 141 628 6080
[email protected]

Calculating the amount paid for goodwill

Response to the following problem:

Pro-tech Software acquired all of the outstanding stock of Reliable software for $14 million. The book value of Reliable's net assets( assets minus liabilities) was $8.3 million. The fair values of Reliable's assets and liabilities equaled their book values with the exception of certain intangible assets whose fair values exceeded book values by $2.5 million. Calculate the amount paid for goodwill.

View Complete Question

Solution Preview :

Prepared by a verified Expert

Accounting Basics: Calculating the amount paid for goodwill

Reference No:- TGS02084011

Now Priced at $20 (50% Discount)

Recommended (99%)

Rated (4.3/5)

Have a Question? (oR Write a Review)

Write atleast 100 words!!

Recent Questions Asked Accounting Basics

Q : Define cultural and social capital and provide examples

Define cultural and social capital and provide examples. Describe why White Americans are less likely to be concerned with social and cultural capital.

Q : Comparison of the value of the stock

Assuming a discount rate of 8 percent, how does the price Mr. Arthur pay compare to the value of the stock?

Q : Creating a statement of retained earnings

You have $1,000 to invest. On the basis of the statements you prepared, would you use it to buy stock in Maple Park?

Q : What are your experiences with family

What are your experiences with family? Are you familiar with the concept of familism? Research the web for information on familism.

Q : Calculating the amount paid for goodwill

The fair values of Reliable's assets and liabilities equaled their book values with the exception of certain intangible assets whose fair values exceeded.

Q : Calculate the debt ratio before and after the bank loan

Calculate the debt ratio before and after the bank loan. Do you think the loan will be granted?

Q : How are your parents are strict with you

How are your parents are strict with you? How do your parents get you to do your schoolwork? How do you feel about this?

Q : Main competition to the firm you work for

One task of a financial manager is to do research on the main competition to the firm you work for.

Q : What you wish you would had known about physical development

What do you wish you would had known about physical development at the time that would have helped you interact better with the infant?

1927641

Questions
Asked

3,689

Active Tutors

1442094

Questions
Answered

Start Excelling in your courses, Ask a tutor for help and get answers for your problems !!

ask Question

Asked Questions

Introduce the instrument you are focusing on

Introduce the instrument you're focusing on. Provide some background information about it and state why it's important in psychological assessment.

Identify ego psychology limitations

Identify Ego Psychology limitations when working with individuals diagnosed with depression (What are some potential weaknesses or

What when a counselor asks a client to pretend to interview

When a counselor asks a client to pretend to interview for a job, and the counselor pretends to be an employer,

Why consciousness is an especially important

Consciousness is an especially important team member characteristic. Research indicates that mixing highly conscious individuals in a team

How level of parental involvement impact middle school

How does the level of parental involvement impact middle school students' academic performance and overall educational experience?

Determining whether male college students

Dr. Smith is interested in determining whether male college students who have a significant stuttering problem are also likely to be introverted.

Compare independent variables, dependent variables

Problem: Compare independent variables, dependent variables, and extraneous variables.