Bartholomew Corporation acquired all of the outstanding sharesof Samson Company in Year 1 by paying $6,875,000 in cash. The fairvalue of Samsonâs identifiable net assets is $5,000,000. Samson isa separate cash-generating unit and reporting unit. At the end ofYear 1, Bartholomew compiles the following information forSamson:
Amount at which the shares of Samson could be sold â¦â¦â¦â¦â¦â¦â¦â¦.$5,000,000
Fair value of Samsonâs identifiable net assets excludinggoodwill â¦â¦â¦. $4,500,000
Costs that would be incurred to sell the shares of Samsonâ¦â¦â¦â¦â¦â¦... $ 200,000
Present value of future cash flows from continuing to controlSamson â¦.. $4,750,000
A. What amount of goodwill should be reported from theacquisition of Samson under IFRS/GAAP?
B. At what amount should Samsonâs identifiable net assets andgoodwill be reported on Bartholomewâs consolidated balance sheet atthe end of Year 1 under U.S. GAAP and IFRS?
Bartholomew Corporation acquired all of the outstanding sharesof Samson Company in Year 1 by paying $6,875,000 in cash. The fairvalue of Samsonâs identifiable net assets is $5,000,000. Samson isa separate cash-generating unit and reporting unit. At the end ofYear 1, Bartholomew compiles the following information forSamson:
Amount at which the shares of Samson could be sold â¦â¦â¦â¦â¦â¦â¦â¦.$5,000,000
Fair value of Samsonâs identifiable net assets excludinggoodwill â¦â¦â¦. $4,500,000
Costs that would be incurred to sell the shares of Samsonâ¦â¦â¦â¦â¦â¦... $ 200,000
Present value of future cash flows from continuing to controlSamson â¦.. $4,750,000
A. What amount of goodwill should be reported from theacquisition of Samson under IFRS/GAAP?
B. At what amount should Samsonâs identifiable net assets andgoodwill be reported on Bartholomewâs consolidated balance sheet atthe end of Year 1 under U.S. GAAP and IFRS?
