Floyd company purchases haeger company for $1,600,000 cash on january 1, 2015. the book value of haeger company's net assets, as reflected on its december 31, 2014 balance sheet is $1,240,000. an analysis by floyd on december 31, 2012 indicates that the fair value of haeger tangible assets exceeded the book value by $120,000, and the fair value of identifiable intangible assets exceeded book value by $90,000. how much goodwill should be recognized by floyd company when recording the purchase of haeger company

How should the environmental effects be dealt with when evaluating this project? the environmental effects should be ignored since the plant is legal without mitigation. the environmental effects should be treated as a sunk cost and therefore ignored. if the utility mitigates for the environmental effects, the project is not acceptable. however, before the company chooses to do the project without mitigation, it needs to make sure that any costs of "ill will" for not mitigating for the environmental effects have been considered in the original analysis. the environmental effects should be treated as a remote possibility and should only be considered at the time in which they actually occur. the environmental effects if not mitigated would result in additional cash flows. therefore, since the plant is legal without mitigation, there are no benefits to performing a "no mitigation" analysis.