Financial Accounting

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Calculation of Goodwill Intangible Asset

FINACT-UJ57T9

F. Company purchased T. Company for \$6,000,000 cash. At the time of purchase, T. Company's assets had a fair market value of \$8,000,000 and the liabilities had a fair market value of \$2,100,000. At the time of purchase, T. Company's assets had a book value of \$10,000,000 and the liabilities had a book value of \$4,500,000. The net income of T. Company was $50,000 in the year of the purchase. T. Company has never paid a dividend.

What amount of goodwill is recorded by F. Company as part of the purchase? (If there is no goodwill, indicate by putting 0.)