Question: The memorandum should be logical, con size and answering all questions.
One page with font 12 and single space. Need to have all a=underline headings below.
The CEO of Northridge has inquired as to why the purchase price of Reseda could exceed the book value of the assets.
Explain the
(1-1) valuation methods for acquiring the firm, the
(1-2) concept of goodwill, and
(1-3) how assets of the newly acquired subsidiary are recorded on the financial statements ( Recording on Financial Statements ) .
Explain the
(2-1) calculation of goodwill and whether
(2-2)subsequent entries are necessary in accounting for goodwill.
To: CEO, Northridge Corporation
From: CPA Candidate
Re: Valuation of acquired firm