Create an Account

Already have account?

Forgot Your Password ?

Home / Questions / Austin Corp. purchased 25% of the voting common stock of Gainesville Co.

Austin Corp. purchased 25% of the voting common stock of Gainesville Co.

Austin Corp. purchased 25% of the voting common stock of Gainesville Co., paying $2,500,000. Austin decided to use the equity method to account for this investment. At the time of the investment, Gainesville's total stockholders' equity was $8,000,000. Austin gathered the following information about Gainesville's assets and liabilities.
Book Value Fair Value
Buildings (10 year life) 400,000 500,000
Equipment ( 5 year life) 1,000,000 1,300,000
Franchises (8 year life) 0 400,000

Calculate the goodwill?

Jun 06 2018 View more View Less

Answer (Solved)

question Subscribe To Get Solution

Related Questions