Ask Question
29 July, 15:11

Suppose Dee's just acquired the assets of Flo's Flowers. The book value of Flo's Flowers assets was $68,000 but Dee's paid a total of $75,000. The additional $7,000 paid by Dee's will be recorded on Dee's balance sheet as: - accounts payable. - other current assets. - goodwill. - property, plant, and equipment.

+4
Answers (1)
  1. 29 July, 15:40
    0
    The correct answer is goodwill

    Explanation:

    The term Goodwill refers to an asset, categorized as intangible, it is associated with the purchase of one company by another; when the purchase price is greater than the sum of the fair value of all assets purchased in the acquisition and the liabilities assumed in the process.

    Some examples of goodwill are patents and a company's brand name
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “Suppose Dee's just acquired the assets of Flo's Flowers. The book value of Flo's Flowers assets was $68,000 but Dee's paid a total of ...” 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