Jamaica Manufacturing Corp Decided To Expand Further By Purchasing The Net Assets Of Kingston Corp Kingston S Statemen 1 (44.69 KiB) Viewed 25 times
Jamaica Manufacturing Corp Decided To Expand Further By Purchasing The Net Assets Of Kingston Corp Kingston S Statemen 2 (8.26 KiB) Viewed 25 times
Jamaica Manufacturing Corp. decided to expand further by purchasing the net assets of Kingston Corp. Kingston's statement of financial position at December 31, 2019 is: KINGSTON CORP Statement of Financial Position As At December 31, 2019 Assets Cash Receivables Inventory Plant Assets (net) Total Assest $210,000 450,000 275.000 1.025.000 $1,960,000 Liabilities and Equities Accounts Payable Common Shares Retained Earnings $325,000 800,000 835,000 Total $1.960,000 An appraisal, agreed to by both parties, indicated that the fair value of the inventory was $320,000 and the fair value of the plant assets was $1,225,000. The fair value of the receivables and payables is equal to the amount reported on the balance sheet. The agreed purchase price was $3 million, and this amount was paid in cash to the owners of Kingston Corp.
Calculate the amount of goodwill (if any) implied in the purchase price of $3 million Show all calculations.
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