Chapter 1 Business Combinations7)
The steadiness sheets of Palisade Firm and Salisbury Company had been as
follows on December 31, 2010:
Frequent Inventory, $5 par
Extra paid-in Capital
Whole Liabilities and Stockholders'
On January 1, 2011 Palisade issued 30,000
of its shares with a market worth of $40 per share in trade for all of
Salisbury's shares, and Salisbury was dissolved. Palisade paid $20,000 to
register and problem the brand new widespread shares. It value Palisade $50,000 in direct
mixture prices. E book values equal market values besides that Salisbury's land
is value $250,000.
Put together a
Palisade steadiness sheet after the enterprise mixture on January 1, 2011.
On January 2, 2011, Pilates Inc. paid $900,000 for the entire excellent
widespread inventory of Spinning Firm, and dissolved Spinning Firm. The carrying
values for Spinning Firm's belongings and liabilities are recorded beneath.
Web belongings $760,000
On January 2, 2011, Spinning anticipated
gathering $185,000 of the recorded Accounts Receivable. Pilates entered into
the acquisition as a result of Spinning had Copyrights that Pilates wished to personal, and
additionally unrecorded patents with a good worth of $100,000.
Calculate the quantity of goodwill that can
be recorded on Pilate's steadiness sheet as of the date of acquisition.