Question - Johnson Corporation acquired all of the outstanding common stock of Smith Corporation for $11,000,000 in cash. The book value of Smith's net assets (assets minus liabilities) was $7,800,000. The fair value of all of Smith's assets and liabilities were equal to their book values with the following exceptions:
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Book Value
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Fair Value
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Receivable
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$1,300,000
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$1,100,000
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Property, Plant, and Equipment
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8,000,000
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9,400,000
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Intangible assets
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200,000
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1,200,000
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Required: Calculate the amount paid for goodwill.