Cash purchase price in a stock acquisition


The cash purchase price in a stock acquisition is $800,000; the book value of the acquired company is $620,000. The book values of equipment, land and patents need to be adjusted ($24,000), ($46,000) and $118,000 respectively. Goodwill, if any, is recorded at:

a. $0

b. $180,000

c. $62,000

d. $132,000

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Accounting Basics: Cash purchase price in a stock acquisition
Reference No:- TGS061102

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