Patent Corp How Much Goodwill Should Be Recorded?
A)$47,000
B)$53,000
C)$70,000
D)$100,000

question 36

Multiple Choice

Patent Corp., a publicly accountable entity, purchased a company with the following assets and liabilities for $100,000: $$\begin{array} { | l | r | r | } \hline & \text { Carrying value } & \text { Fair value } \\\hline \text { Cash } & 10,000 & 10,000 \\\hline \text { Inventories } & 18,000 & 17,000 \\\hline \text { Property, plant and equipment } & 12,000 & 10,000 \\\hline \text { Intangible assets } & 32,000 & 40,000 \\\hline \text { Accounts payable } & 15,000 & 15,000 \\\hline \text { Long-term liabilities } & 10,000 & 15,000 \\\hline \text { Equity } & 47,000 & \\\hline\end{array}$$ How much goodwill should be recorded?

• A)$47,000
• B)$53,000
• C)$70,000
• D)$100,000

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Definitions:

Centralized Bank Account

A single bank account used by a company to manage and control all payments and receipts, simplifying cash management.

Adjustment Costs

Expenses incurred from making changes to a business, such as restructuring operations or relocating facilities.

Marketable Securities

Short-term financial instruments that can be quickly converted into cash at a reasonable price, like stocks and bonds.

Treasury Bill

A short-term government security issued at a discount from the face value and pays no interest.