Use the following information to answer questions 15-16
The following information applies to the questions displayed below.On July 1, TruData Company issues 10,800 shares of its common stock with a $5 par value and a $42 fair value in exchange for all of Webstat Company's outstanding voting shares. Webstat's precombination book and fair values are shown below along with book values for TruData's accounts.
| |
TruData |
Webstat |
Webstat |
| |
Book Values |
Book Values |
Fair Values |
| Revenues (1/1 to 7/1) |
$(257,250) |
$(137,000) |
|
| Expenses (1/1 to 7/1) |
188,500 |
96,500 |
|
| Retained earnings, 1/1 |
(134,000) |
(150,500) |
|
| Cash and receivables |
136,500 |
42,000 |
$ 42,000 |
| Inventory |
201,500 |
150,000 |
186,000 |
| Patented technology (net) |
249,750 |
127,000 |
163,400 |
| Land |
411,750 |
248,500 |
286,900 |
| Buildings and equipment (net) |
111,750 |
95,250 |
95,250 |
| Liabilities |
(598,500) |
(371,750) |
(351,550) |
| Common stock |
(300,000) |
(70,000) |
|
| Additional paid-in capital |
(10,000) |
(30,000) |
|
| |
1. On its acquisition-date consolidated balance sheet, what amount should TruData report as goodwill?
$0.
$31,600.
$55,300.
$120,300