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On March 31, 2021, Wolfson Corporation acquired all of the outstanding common stock of Barney...

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Accounting

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On March 31, 2021, Wolfson Corporation acquired all of the outstanding common stock of Barney Corporation for $17,400,000 in cash. The book values and fair values of Barney's assets and liabilities were as follows: Fair Value Book Value $ 6,400,000 11,400,000 1,040,000 4,400,000 6,400,000 $ 7,900,000 14,400,000 1,540,000 4,400,000 5,900,000 Current assets Property, plant, and equipment Other assets Current liabilities Long-term liabilities Required: Calculate the amount paid for goodwill. Goodwill Johnson Corporation acquired all of the outstanding common stock of Smith Corporation for $12,920,000 in cash. The book value of Smith's net assets (assets minus liabilities) was $9,400,000. The fair values of all of Smith's assets and liabilities were equal to their book values with the following exceptions: Fair Value Book Value $ 2,540,000 11,160,000 1,520,000 Receivables $2,900,000 9,600,000 360,000 Property, plant, and equipment Intangible assets Required: Calculate the amount paid for goodwill. Goodwill

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