Ask Question
BusinessBusiness
25 November, 10:06

The balance sheet of Flo's Restaurant showed total assets of $320,000, liabilities of $88,000 and stockholders' equity of $282,000. An appraiser estimated the fair value of the restaurant assets at $365,000. If Alice Company pays $425,000 cash for the restaurant, what is the amount of goodwill? Multiple Choice $105,000 $148,000 $143,000 $60,000

+2
Answers (1)
  1. 25 November, 13:57
    0
    The answer is $148,000

    Explanation:

    Goodwill comes into effect or arises when a company acquires another company. Goodwill is an intangible asset. It is difference between the purchase price of a company and the net asset (total assets minus total liability)

    Purchase price is $425,000

    Fair value of the asset is $365,000

    Total liability is $88,000.

    Net asset = $365,000 - $88,000

    =$277,000

    Therefore, goodwill is $425,000 - $277,000

    = $148,000
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “The balance sheet of Flo's Restaurant showed total assets of $320,000, liabilities of $88,000 and stockholders' equity of $282,000. An ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers
You Might be Interested in
The following data for the telephone company pertain to the production of 450 rolls of telephone wire during June. Selected items are omitted because the costing records were lost in a windstorm.
Answers (1)
According to Adam smith, what will the best economic system have?
Answers (1)
Why is it important to take special steps to format an electronic résumé properly? a. It demonstrates superior knowledge over other candidates b. It shows time went into applying for the position c. It ensures the document is clear and readable d.
Answers (1)
What is the goal of expansionary fiscal policy? A. reduce inflation B. raise tax levels C. increase employment D. decrease government spending
Answers (2)
Leticia is twentyminustwo years old and she has all of her savings in a Certificate of Deposit (CD) at the bank that currently pays an annual 1.5 percent yield. The account is protected by the FDIC so it is virtually risk free.
Answers (1)
New Questions in Business
A (n) is the issuer's written promise to pay an amount equaling the par value. The par value is paid at a specified future date. Most often, the issuer is required to make semiannual interest payments.
Answers (1)
The primary goal of the Consumer Financial Protection Bureau is: A To monitor your credit report and ensure your identity and other sensitive data has not been compromised. B To protect against abusive or deceptive debt collection purposes.
Answers (1)
Jake Skinner purchases a big screen TV on credit and will repay the loan with one payment at the end of 90 days. What type of credit did Jake use?
Answers (1)
Which most likely results from producers engaging in specialization? Producers reduce their costs. Producers increase their market share. Producers decrease the materials needed for production. Producers always offer more competitive pricing.
Answers (1)
The workers at State Hospital, a public sector employer, and Acme Inc, a private employer, are subject to speech censorship and arbitrary job termination. Constitutional issues are present only for the State Hospital workers. TrueFalse
Answers (1)
Home » Business » The balance sheet of Flo's Restaurant showed total assets of $320,000, liabilities of $88,000 and stockholders' equity of $282,000. An appraiser estimated the fair value of the restaurant assets at $365,000.
Sign Up Forgot Password?