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  • Chapter 33 Intangible Assets Intro and Goodwill - XLSM - Residual Approach

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    Jaypee Verzo Salta
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    An entity purchased an ongoing business for $9 million in cash. The fair values of the business's assets included $7 million in total tangible and intangible assets and $2 million in goodwill. Using the residual method, goodwill was calculated as the difference between the $9 million purchase price and $7 million in net assets.

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    Chapter 33 Intangible Assets Intro and Goodwill.xlsm - Residual approach

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    An entity purchased an ongoing business for $9 million in cash. The fair values of the business's assets included $7 million in total tangible and intangible assets and $2 million in goodwill. Using the residual method, goodwill was calculated as the difference between the $9 million purchase price and $7 million in net assets.

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    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
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    7 views2 pages

    Chapter 33 Intangible Assets Intro and Goodwill - XLSM - Residual Approach

    Uploaded by

    Jaypee Verzo Salta
    An entity purchased an ongoing business for $9 million in cash. The fair values of the business's assets included $7 million in total tangible and intangible assets and $2 million in goodwill. Using the residual method, goodwill was calculated as the difference between the $9 million purchase price and $7 million in net assets.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
    of 2

    An entity purchased an ongoing business for 9,000,000 cash.

    The assets and liabilities of the acquired business measured


    at fair value are:

    Assets:
    Cash ( 500,000.00)
    Accounts receivable ( 1,500,000.00)
    Inventory ( 2,500,000.00)
    PPE ( 4,000,000.00)
    Patent ( 1,300,000.00)

    Liabilities:
    Accounts payable ( 1,600,000.00)
    Notes payable ( 1,000,000.00)
    Accrued liabilities ( 200,000.00)

    Residual Approach
    Purchase price xxx
    Fair value of NET assets (xxx)
    Goodwill xxx

    Residual Approach
    Purchase price ( 9,000,000.00)
    Fair value of NET assets ( (7,000,000.00)
    Goodwill ( 2,000,000.00)

    Cash ( 500,000.00)
    Accounts receivable ( 1,500,000.00)
    Inventory ( 2,500,000.00)
    PPE ( 4,000,000.00)
    Patent ( 1,300,000.00)
    Goodwill ( 2,000,000.00)
    Accounts payable ( 1,600,000.00)
    Notes payable ( 1,000,000.00)
    Accrued liabilities ( 200,000.00)
    Cash ( 9,000,000.00)

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