Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. simmons corporation paid $170,000 to acquire all o

Simmons Corporation paid $170,000 to acquire all of Bush Company's net assets. Bush reported assets...

70.2K

Verified Solution

Question

Accounting

Simmons Corporation paid $170,000 to acquire all of Bush Company's net assets. Bush reported assets with a book value of $189,000 and a fair value of $206,000 and liabilities with a book value and fair value of $48,000 on the date of the combination. Simmons also paid $8,000 to a search firm for finder's fees related to the acquisition. What amount will be recorded as goodwill by Simmons Corporation when recording its investment in Bush?

a. $29,000

b. $20,000

c. $12,000

d. $10,000

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

Chemistry
1.2K views

Molecular Orbital Theory -- Homodiatomics Use the molecular orbital model to fully describe the bonding in...

Physics
1.2K views

Create a plot comparing the force applied to an object versus the angle at which the...

Psychology
1.2K views

When developing a therapy group what are the appropriate pre-screening questions (inclusion/exclusion criteria)?

Physics
1.2K views

The area enclosed by the wire loop in the figure below is reduced from 31 cm2...

Physics
1.2K views

6 A capacitor is made of a flat plate of area A and a second...

Calculus
1.2K views

0 Let f x A alx x 21 2 x x b X X 2...

Accounting
1.2K views

Sheffield Inc. is preparing its annual budgets for the year ending December 31,...

Accounting
1.2K views

On January 1, 2021, a compary issues $740,000 of 8% bonds, due in tweive years,...

Accounting
1.2K views

Silver Company makes a product that is very popular as a Mothers Day gift. Thus,...

Accounting
1.2K views

The net income reported on the income statement for the current year was $141,100. Depreciation...

Accounting
1.2K views

Speedy Taxi Service uses the units-of-production method to calculate depreciation on its taxicabs. Each cab...

Accounting
1.2K views

Seligram applies the double declining balance depreciation method to the new testing equipment. Do you...