Problem 3 (9/24) Johnson Corporation acquired all of the outstanding common stock of Smith Corporation...
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Accounting
Problem 3 (9/24) Johnson Corporation acquired all of the outstanding common stock of Smith Corporation for $12,200,000 in cash. The book value of Smiths net assets (assets minus liabilities) was $8,800,000. The fair values of all of Smiths assets and liabilities were equal to their book values with the following exceptions:
| Book Value | Fair Value | |||||
| Receivables | $ | 2,300,000 | $ | 2,000,000 | ||
| Property, plant, and equipment | 9,000,000 | 10,500,000 | ||||
| Intangible assets | 300,000 | 1,400,000 | ||||
| Required: |
| Calculate the amount paid for goodwill. |
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