Salem Co Had the Following Account Balances as of December 1

question 85

Essay

Salem Co. had the following account balances as of December 1, 2010:

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, 2010 consolidation.

---

Definitions:

Intelligence Quotient

A score derived from standardized tests designed to measure human intelligence and cognitive abilities in relation to an age group.

Intelligence Quotient

A measure of a person's relative cognitive abilities determined through specific standardized tests.

Mental Age

A measure of an individual's cognitive ability expressed as the age at which an average individual reaches the same ability.

Chronological Age

The actual age of an individual measured in years from the date of birth to the current date.