Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. american outfitters purchases a company, canadian

American Outfitters purchases a company, Canadian Outfitters, for a price of $2M. American Outfitters assets...

60.1K

Verified Solution

Question

Accounting

American Outfitters purchases a company, Canadian Outfitters, for a price of $2M. American Outfitters assets have a market value of $3M. Canadian Outfitters assets have a market value of $1.5M. Canadian Outfitters liabilities have a market value of $30,000. Canadian Outfitters liabilities have a book value of $25,000. American Outfitters liabilities have a market value of $32,000. What is the amount of Goodwill that results from the purchase of American Outfitters of Canadian Outfitters? $530,000 $532,000 $0 as goodwill cannot arise from this type of purchase $0 as goodwill only arises when a company purchases a company in the same line of business as its own and this is unknown in this case $32,000

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students