On June 1 Cline Co paid 1012000 cash for al of the issued an

On June 1, Cline Co. paid $1,012,000 cash for al of the issued and outstanding common stock of Renn Corp. The carrying amounts for Renn\'s assets and Fablities on June 1 fellow 39 197,000 247,000 Capitalized software cOsts 391,000 135,000 (228,000 742,000 Accounts receivable 10 poins Coodwil11 LSabilitiea Net aasets eBook On June 1, Ronn\'s accounts receivablo had a foir value of $202,000, Addnonaly Renn\'s in-process nosearch and development was ostimated to have a fair volue of $290000 Alother tems viere stated at their fair values. On Cine\'s June 1 consoldated balance sheet how much is reported for goodw? $202000 s reponed for Multiple Choice $20,000 $391000 $160000 $115,000

Solution

Answer:- 160,000

Calculation:-

Consideration transferred(fair value)		$1,012,000
Cash	$197,000
Accounts receivable	$202,000
Capitalized software cost	$391,000
Research and development	$290,000
Liabilities	($228,000)
Fair value of net identifiable assets acquired		$852,000
Goodwill		$160,000