What amount should beauty report as goodwill


Problem: On November 30, 2017, Beauty, Inc. purchased for cash at 15 per share all 250,000 shares of the outstanding common stock of Clean Co. On November 30, 2017, Clean's balance sheet showed a carrying amount of net assets of 3,000,000. At that date, the fair value of Clean's property, plant and equipment extended its carrying amount by 400,000. In its November 30, 2017 consolidated balance sheet, what amount should Beauty report as goodwill?

 

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Accounting Basics: What amount should beauty report as goodwill
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