Page 50 - CFA Lecture Day 8 Slides

Session Unit 7:

25. Understanding Balance Sheets (C/C/A/A/B/B)

tanties

B. Purchase price of $7,500,000 [$15 per share × 500,000 shares] – fair value of net assets of

$7,000,000 [$6,000,000 book value + $1,000,000 increase in property and equipment] =
goodwill of $500,000