Lawson CoRecently Acquired All of Graham Inc

question 15

Multiple Choice

Lawson Co.recently acquired all of Graham Inc.'s net assets in a business acquisition.The cash purchase price was $5,000,000.Graham's assets and liabilities had the following appraised values immediately prior to the acquisition: land, $1,000,000; buildings, $3,200,000; inventory, $2,000,000; long-term notes payable, for which Lawson Co.assumes payment responsibilities, $2,500,000.How much goodwill will result from this transaction?

• A)$700,000.
• B)$1,200,000.
• C)$1,300,000.
• D)$1,800,000.

---

Definitions:

Large Income

Substantial earnings or revenue, typically considerably higher than the average income, affording a high standard of living.

High Productivity

Indicates a significant output or efficiency in production or performance relative to the input of resources, time, or labor.

Technological Progress

The advancement and innovation in technology, leading to more efficient processes, improved products, and overall economic growth.

Unemployment

The state of being without a job despite actively seeking work, reflected as a percentage of the labor force.