Business, 24.03.2020 17:04 kylemartinez13

Nordic Outfitters purchased all the outstanding common stock of European Retail for $3,000,000 in cash. The book values and fair values of European Retail's assets and liabilities were:

Book Value Fair Value
Receivables $250,000 $250,000
Property, plant, and equipment 2,000,000 2,400,000
Intangible assets 200,000 500,000
Liabilities (650,000) (650,000)
Net Assets $1,800,000 $2,500,000

Required:
1. Calculate the amount paid for goodwill.
2. Record Nordic Outfitters' acquisition of European Retail.

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Nordic Outfitters purchased all the outstanding common stock of European Retail for $3,000,000 in ca...