Problem - The XYZ Company has purchased all of the outstanding common stock of Company 123 for $25,000,000 in cash.
The book value of Company 123's net assets (assets minus liabilities) was $16,250,000.
The fair values of all of Company 123's assets and liabilities were equal to their book values with the following exceptions,
Book Value Fair Value
Receivables $3,000,000 $2,850,000
Property, plant, and equipment 10,200,000 11,200,000
Intangible assets 30,000 3,000,000
Please calculate the amount paid for goodwill?