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Turner's has $3.8 million in net working capital. The firm has fixed assets with a book value of $48.6 million and a market value of $54.2 million. Martin amp; Sons is buying Turner’s for $61.5 million
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24 votes
24 votes
Turner's has $3.8 million in net working capital. The firm has fixed assets with a book value of $48.6 million and a market value of $54.2 million. Martin amp; Sons is buying Turner’s for $61.5 million in cash. The acquisition will be recorded using the purchase accounting method. What is the amount of goodwill that Martin amp; Sons will record on its balance sheet as a result of this acquisition?

a. $0
b.$3.5 million
c. $6.6 million
d. $7.2 million
e. $9.1 million

User Paparis
by
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1 Answer

11 votes
11 votes
B. 3.5 million.
You’re welcome, wasn’t sure if you needed an explanation.
User Yan Khonski
by
2.8k points
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