On March 31,2012,the New Harvest Bakery Acquired All the Outstanding

question 56

Essay

On March 31,2012,the New Harvest Bakery acquired all the outstanding common stock of Red Rock Bakery for $68,000 in cash.The book values and market values of Red Rock's assets and liabilities were as follows:
Calculate the amount paid for goodwill.
$\begin{array}{lrr}&\text { Book Value }&\text { Fair Value }\\\text { Current assets } & \$ 24,000 & \$ 30,000 \\\text { Property, plant, and equipment } & 44,000 & 56,000 \\\text { Other assets } & 4,000 & 6,000 \\\text { Current liabilities } & 16,000 & 16,000 \\\text { Long-term liabilities } & 24,000 & 22,000\end{array}$

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