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On May 31 2011 Walker Company a US company paid US$4000000 to acquire all of the common stock of Hayden Corporation an Australian company which now became a division of Walker Hayden

On May 31 2011 Walker Company a US company paid US$4000000 to acquire all of the common stock of Hayden Corporation an Australian company which now became a division of Walker Hayden

On May 31, 2011, Walker Company (a US company) paid US$4,000,000 to acquire all of the common stock of Hayden Corporation (an Australian company), which now became a division of Walker. Hayden reported the following US$ balance sheet at the time of the acquisition:

At December 31, 2011, Hayden reports the following US$ balance sheet information:

During the annual impairment test conducted on December 31, 2011, it was determined that the fair value of the Hayden division as a whole would be equal to the present value (using a discount rate of 10%) of the following estimated future cash follows:

(b) Determine the implied fair value of goodwill on 12/31/11.

 

Book Value $

Fair Value $

Current Assets

900,000

1,500,000

Noncurrent Assets

2,700,000

2,300,000

Current liabilities

(600,000)

(700,000)

Long-term liabilities

(500,000)

(400,000)

 

 
mahesh 24-Mar-2020

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