On January 3, 2011, Austin Corp. purchased 25% of the voting common stock of GainsvilleCo., paying $2,500,000. Austin decided to use the equity method to account for thisinvestment. At the time of the investment, Gainsville's total stockholders' equity was$8,000,000. Austin gathered the following information about Gainsville's assets andliabilities:
On January 3, 2011, Austin Corp. purchased 25% of
For all other assets and liabilities, book value and fair value were equal. Any excess of costover fair value was attributed to goodwill, which has not been impaired. For all other assets and liabilities, book value and fair value were equal. Any excess of costover fair value was attributed to goodwill, which has not been impaired.
What is the amount of goodwill associated with the investment?
Answers (1)
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “On January 3, 2011, Austin Corp. purchased 25% of the voting common stock of GainsvilleCo., paying $2,500,000. Austin decided to use the ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers
You Might be Interested in
Which of the following is NOT true about an ATM? A. ATM stands for "Access or Transfer Money". B. An ATM is available virtually 24 hours a day. C. You can make a deposit at your bank's ATM. D. You can transfer money between your own accounts.
Answers (2)
During the current year, Horace's personal residence is damaged by a tornado. The residence had an adjusted basis of $80,000 before the tornado. The cost of re-pairing the damage is $30,000.
Answers (1)
Kendall borrowed $782,000 on a construction loan at 10% interest on January 1, 2021. This loan was outstanding throughout the construction period. The company had $4,660,000 in 7% bonds payable outstanding in 2021 and 2022.
Answers (1)
Philadelphia Company has the following information for March: Sales $450,000 Variable cost of goods sold 240,000 Fixed manufacturing costs 70,000 Variable selling and administrative expenses 52,000 Fixed selling and administrating expenses 35,000
Answers (1)
The inflation tax is the effect on the public of
Answers (1)
New Questions in Business
Increasing the amount of credit that is available within an economy is done through? Expansionary monetary policy or contractionary?
Answers (2)
The most serious derailment pattern for leaders seeking promotion is:
Answers (1)
Which of the following statements is false about wind power? A. It is a clean source of energy B. It is most profitable in areas that have fairly continual winds C. It is the least competitive of all forms of renewable energy, in terms of cost D.
Answers (1)
Frankie is a buyer for a department store and is buying some handbags at a cost of $30 from a vendor. He desires to have a 60 percent markup to meet the financial goals of this category. What will be the retail price of these handbags?
Answers (1)
The type of contract that comes into existence by simply speaking to one another is
Answers (2)