How much goodwill should be recognized


Bullen issued 12,000 shares of common stock with $ 5. par value and 47 fair value to obtain all of Vicker's outstanding stock. In this acquisition transaction, how much goodwill should be recognized?

                    Book Value Bullen            Book Value Vicker            Fair VAlue Vicker

Cash & receiv.             170,000                    70,000                           70,000

Inventory                      230,000                   170,000                        210,000

Land                             280,000                   220,000                         240,000

Buildings (net)              480,000                   240,000                         270,000

Equipment                    120,000                    90,000                           90,000

Liabilities                       650,000                   430,000                         420,000

REt.Earnings                 250,000                   240,000

Common Stock              360,000                   80,000

Add.paid in cap               20,000                   40,000

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Accounting Basics: How much goodwill should be recognized
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