Accounting for the goodwill


Goodwill

Response to the following problem:

Pro-tech Software acquired all of the outstanding stock of Reliable Software for $14 million. The book value of Reliable's net assets (assets minus liabilities) was $8.3 million. The fair values of Reliable's assets and liabilities equaled their book values with the exception of certain intangible assets whose fair values exceeded book values by $2.5 million. Calculate the amount paid for goodwill.

 

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Accounting Basics: Accounting for the goodwill
Reference No:- TGS02093479

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