Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. on january 1, 2018, bast co. had a net book value

On January 1, 2018, Bast Co. had a net book value of $2,100,000 as follows:...

50.1K

Verified Solution

Question

Accounting

On January 1, 2018, Bast Co. had a net book value of $2,100,000 as follows:

Preferred stock, 2,000 shares $70 par value, cumulative, nonparticipating, nonvoting $140,000
Common stock, 22,400 shares $50 par value 1,120,000
Retained earnings 840,000
Total shareholders equity $2,100,000

Fisher Co. acquired all of the outstanding preferred shares for $148,000 and 60% of the common stock for $1,281,000. Fisher believed that one of Bast's buildings, with a twelve-year life, was undervalued on the company's financial records by $70,000.

Required: What is the amount of goodwill to be recognized from this purchase?

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: Zin AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

Write, in radians, the related angles (remaining family members) from 0 to 2? for each...

Geometry
Q

DIC CONTEC diiswers Given ABCD is a rhombus Prove ABCD is a parallelogram ABCD is...

Geometry
Q

Assume that we wish to design a Mach 10 hypersonic wind tunnel using air as the...

Mechanical Engineering
Q

Explain the following code. What language? What does it do? What is the result? SELECT date_trunc('month',date),avg(value) FROM rain GROUP...

Electrical Engineering
Q

Computer Depot was incorporated on January 1st. The business maintains a retail personal computer replacement parts...

Accounting
Q

Perform the indicated operation on the expressions below Be sure to simplify your answer 12...

Algebra
Q

Date Name Ceme This do now must be submitted by the end of class for...

Algebra
Q

Problem 30-11 (IFRS) At year-end, Burglar Company has a cash generating unit with the following...

Accounting
Q

t, you have just been offered a big production contract by a new client. The...

Accounting
Q

Newport News Manufacturing, Inc. has the following information available for September 2022. Unit...

Accounting
Q

True or False? Absent a waiver in a Partnership Agreement, a partner's dissociation from a...

Accounting
Q

Using the previous closing price from the provided quote, calculate the approximate number of shares...

Finance