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Gongman Corp. had a fresh start reorganization value of $1,000,000. What amount of goodwill should have been recognized in recording the reorganization

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Answer: $100,000

Step-by-step explanation:

Your question isn't complete but here's a similar question I found.

Gongman Corp. owned the following assets when it came out of a Chapter 11 bankruptcy

Book Value Fair Value

Inventory 200,000 160,000

Land 80,000 150,000

Buildings 300,000 340,000

Equipment 400,000 250,000

Gongman Corp. had a fresh start reorganization value of $1,000,000. What amount of goodwill should have been recognized in recording the reorganization?

To calculate the amount of goodwill that should have been recognized in recording the reorganization goes thus:

Reorganization value = $1,000,000

Less: Fair value of assets gotten

Inventory = $160,000

Land = $150,000

Building = $340,000

Equipment = $250,000

Total = $900,000

Amount of Goodwill = Reorganization value - Fair value of assets

= $1,000,000 - $900,000

= $100,000

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