Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. salem co. had the following account balances as of

Salem Co. had the following account balances as of Feb. 1, 2015. Inventory $720,000, Land...

80.2K

Verified Solution

Question

Accounting

Salem Co. had the following account balances as of Feb. 1, 2015. Inventory $720,000, Land $600,000, Building net (valued at $1,200,000) $1,080,000, Common stock $10 par value $960,000, Retained earnings, Jan. 1, 2015 $1,320,000, Revenue $720,000, Expenses $600,000. Bellington Inc, paid $1,700,000 in cash and issued 12,000 shares of its $30 par value common stock (valued at $90 per share) for all of Salems outstanding common stock. This investment is accounted for using the purchase method. Determine the balance for goodwill that would be included in a Feb. 1, 2015 Consolidation.

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