Question

On March 31, 2018, Wolfson Corporation acquired all of the outstanding common

stock of Barney Corporation for $18,000,000 in cash. The book values and fair values of Barney’s assets and liabilities were as follows: Book Value Fair Value Current assets $ 7,000,000 $ 8,500,000 Property, plant, and equipment 12,000,000 15,000,000 Other assets 1,100,000 1,600,000 Current liabilities 5,000,000 5,000,000 Long-term liabilities 7,000,000 6,500,000

Required: Calculate the amount paid for goodwill.

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