On june 1, cline co. paid $800,000 cash for all of the issued and outstanding common stock of renn corp. the carrying amounts for renn’s assets and liabilities on june 1 follow: cash $150,000 accounts receivable 180,000 capitalized software costs 320,000 goodwill 100,000 liabilities (130,000) net assets $620,000 on june 1, renn’s accounts receivable had a fair value of $140,000. additionally, renn’s in-process research and development was estimated to have a fair value of $200,000. all other items were stated at their fair values. on cline’s june 1 consolidated balance sheet, how much is reported for goodwill?

Goodwill = 460.000

Explanation:

The Net Book Value of Renn Corp. on June 1 is 620,000

The Fair value of the net Assets of Renn Corp. on June 1 is 460,000. This is calculated as follows:

To the Book Value we will take of the amount of accounts receivable (180,000) and capitalized software costs (320,000); and we will add the fair value of those assets (140,000 and 200,000)

Fair value of the net Assets = 620,000 - 180,000 + 140,000 - 320,000 + 200,000 = 460,000

And difference betewn the Fair value and the purchase price is Goodwill:

Goodwill = Purchase Price - Fair value of the net Assets

Goodwill = 800,000 - 460,000

Goodwill = 340,000

answer: 11/12

step-by-step explanation: 4 1/4 and 3 1/3 is equivalent to 4 3/12 and 3 4/12. 4 3/12 - 3 4/12 =11/12

answer; importance to people; or acceptance;