Question: On March 31, 2016, Wolfson Corporation acquired all of the outstanding common stock of Barney Corporation for $19,000,000 in cash. The book values and fair values of Barney's assets and liabilities were as follows:
|
Book Value |
Fair Value |
| Current assets |
$ |
8,000,000 |
|
$ |
9,500,000 |
|
| Property, plant, and equipment |
|
13,000,000 |
|
|
16,000,000 |
|
| Other assets |
|
1,200,000 |
|
|
1,700,000 |
|
| Current liabilities |
|
6,000,000 |
|
|
6,000,000 |
|
| Long-term liabilities |
|
8,000,000 |
|
|
7,500,000 |
|
Required: Calculate the amount paid for goodwill.