Double corporation acquired all of the common stock of simple company for

$8,000,000

Explanation:

The computation of the amount paid for goodwill is shown below:

= Cash Consideration paid - Fair value of net assets received

where,

Cash consideration is $35,000,000

And, the fair value of net assets is

= Fair value of property plant and equipment + fair value of other assets + fair value of current assets - fair value of current liabilities - fair value of long term liabilities

= $26,400,000 + $2,600,000 + $13,000,000 - $6,000,000 - $9,000,000

= $27,000,000

So, the amount paid to goodwill is

= $35,000,000 - $27,000,000

= $8,000,000

We simply applied the above formula

The net asset is

= Total assets - total liabilities

And, the same is applied above

The Goodwill is $7,000,000

Explanation:

$

Purchase price. 38,000,000

Less:

Fair value of asset 48,000,000

Less: Fair value of liabilities 17,000,000

Fair value of net Asset. 31,000,000

Goodwill. 7,000,000

Workings

Fair value of Asset = Current Asset + Property, plant and equipment + Other asset

= 14,800,000 + 30,000,000 + 3,200,000

= 48,000,000

Fair value of Liabilities = Current Liability + Long term Liability

= 6,600,000 + 10,400,000

= 17,000,000

$7 million

Explanation:

Make Adjustments between the Book Values and the Fair Values

                                             All values are in $Million(s)

                              Book Value      Fair Value         Adjusted

Current Assets         11.8                    14.8                    3

Fixed Assets             24                     30                      6

Other Assets            2.2                     3.2                     1

Current Liabilities    (6.6)                   (6.6)                   (0)

LT Liabilities             (11.4)                  (10.4)                   1

Equity                        20                     31                       11

Now, we would calculate the excess purchase price which is the difference between the $38 million paid by Mainline Produce Corporation in order to acquire Iceberg Lettuce Corporation and the net book value of the assets

Excess purchase price = 38 - 20 = $18 million

Goodwill = Excess purchase price - Fair value adjustments

               = $18 million - $11 million

             = $7 million

The goodwill paid is $7 million

Good will $9(million)

Explanation:

($Million)

Purchase price $30

Less: Fair value of assets acquired 41

Less: Fair value of liabilities assumed (20)

Fair value of identifiable net assets 21

Goodwill (30-21) $ 9

The acquiring company records goodwill equal to the purchase price less the fair value of identifiable net assets acquired.

The amount paid for goodwill is $3,000,000

Explanation:

For computing the goodwill amount, first we have to find out the net assets value based on fair values which is shown below:

Net asset = Total assets - Total liabilities

where,

Total assets = Current assets + Property, plant, and equipment + Other assets

= $14,000,000 + $36,000,000 + $4,000,000

= $54,000,000

And, the total liabilities = Current liabilities + Long-term liabilities

                                      = $7,400,000 + $11,600,000

                                      = $19,000,000

Now put these values to the above formula

So, the value would be equal to

= $54,000,000 - $19,000,000

= $38,000,000

Now the goodwill would be

= Amount paid - Net assets

= $38,000,000 - $35,000,000

= $3,000,000