On March 31, 2020, Cullumber Company paid $5,893,000 to acquire all of the common stock...
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On March 31, 2020, Cullumber Company paid $5,893,000 to acquire all of the common stock of Drive Incorporated, which became a division of Cuflumber. Drive reported the following balance sheet at the time of the acquisition. It was determined at the date of the purchase that the fair value of the identifiable net assets of Drive was $4.437.000.0ver the next 9 months of operations, the newly purchased division experienced operating losses. In addition, it now appears that it will generate substantial losses foe the foreseeable future. At Decernber 31. 2020. Drive reports the following balance sheet information. It is determined that the fair value of the Drive Division is $4.455.000. The recorded amount for Drive's net assets (excluding goodwill) is the same as fair value, except for propertv. plant, and equipment, which has a fair value $100,000 above the carrying value. Compute the amount of coodwill recogrized, it anv on March 31, 2020. (if anvwer is rere, do not leave anwwer field blank. Enter 0 for the amount.)
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