Thomas Inc

question 78

Essay

Thomas Inc. had the following stockholders' equity accounts as of January 1, 2021: Kuried Co. acquired all of the voting common stock of Thomas on January 1, 2021, for $20,656,000. The preferred stock remained in the hands of outside parties and had a fair value of $3,060,000. A database valued at $656,000 was recognized and amortized over five years. During 2021, Thomas reported earning $630,000 in net income and paid $504,000 in total cash dividends. Kuried used the equity method to account for this investment.What is the amount of goodwill resulting from this acquisition?

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Definitions:

Neuron Death

The process of cell death in neurons, which can result from disease, injury, or aging, leading to various neurological conditions.

Early-Onset Alzheimer's

Alzheimer's disease diagnosed before the age of 65, typified by the same symptoms as late-onset but progresses rapidly.

Protein-Producing Genes

Genes that provide instructions for creating proteins, which are crucial for the body's structure and functions.

Senile Plaques

Sphere-shaped deposits of beta-amyloid protein that form in the spaces between certain brain cells and in certain blood vessels as people age. People with Alzheimer’s disease have an excessive number of such plaques.