Salem Co Had the Following Account Balances as of December 1

question 64

Essay

Salem Co. had the following account balances as of December 1, 2012: $\begin{array}{lr}\text { Inventory } & \$ 720,000 \\\text { Land } & 600,000 \\\text { Buildings - net (valued at } \$ 1,200,000) & 1,080,000 \\\text { Common stock (\$10 par value) } & 960,000\\\text { Retained earnings, December 1, } 2012 & 1,320,000 \\\text { Revenues } & 720,000 \\\text { Expenses } & 600,000\end{array}$ Bellington Inc. transferred $1.7 million in cash and 12,000 shares of its newly issued $30 par value common stock (valued at $90 per share) to acquire all of Salem's outstanding common stock.
Assume that Bellington paid cash of $2.8 million. No stock is issued. An additional $50,000 is paid in direct combination costs.
Required:
For Goodwill, determine what balance would be included in a December 1, 2012 consolidation.

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Definitions:

Checking Routines

Behaviors commonly associated with OCD, involving repeated checking to alleviate anxiety related to fears of harm or mistakes.

Obsession

A persistent and intrusive thought or interest that occupies one's mind to an excessive or unreasonable degree.

Cleanliness And Contamination

Concerns with maintaining hygiene and avoiding substances or situations that are deemed unclean or polluting.

Obsessions

Persistent, unwanted thoughts, urges, or images that cause significant anxiety or distress.