PLEASE EXPLAIN THE ANSWER STEP BY STEP. THANK U. Dorel Company is being purchased and has the following balance sheet as of the purchase date:$200,000180,000$380,000LiabilitiesEquityTotal$ 90,000290,000$380,000Current assetsFixed assetsTotalAmanda Co. paid for 45% of Dorel's net assets is $500,000. The fixed assets have a fair value of$220,000, and the liabilities have a fair value of $110,000. The amount of goodwill or gain to berecorded in the purchase is:

Net assets of Dorel = Current assets + Fair value of fixed assets - fair value of current…

Dorel Company is being purchased and has the following balance sheet as of the purchase date: $ 90,000 290,000 $380,000 Current assets $200,000 Liabilities Fixed assets 180,000 $380.000 Equity Total Total Amanda Co. paid for 45% of Dorel's net assets is $500,000. The fixed assets have a fair value of $220,000, and the liabilities have a fair value of $110,000. The amount of goodwill or gain to be recorded in the purchase is:

Dorel Company is being purchased and has the following balance sheet as of the purchase date: $ 90,000 290,000 $380,000 Current assets $200,000 Liabilities Fixed assets 180,000 $380.000 Equity Total Total Amanda Co. paid for 45% of Dorel's net assets is $500,000. The fixed assets have a fair value of $220,000, and the liabilities have a fair value of $110,000. The amount of goodwill or gain to be recorded in the purchase is:

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter4: The Balance Sheet And The Statement Of Shareholders' Equity

Section: Chapter Questions

Problem 6RE: Oz Corporation has the following assets at year-end: Patents (net), 26,000; Land, 50,000; Buildings,...

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