Book 2, pg 183, Prob 27 1070, states, assets, solution

Andreas42

27: The solution states that the net book value of recorded assets is 580? How the F?
How come Equity is same thing as net book value of recorded assets? I thought net book value of assets is 1070 in this case, since fair value = book value.

benbenxiong

Aquisition method:
When looking for goodwill,
you do:
Price of aqusition minus Fair market value of NET ASSET.
NET ASSET is ASSET-LIABILITY
ie. net asset is just straight up equity.
if i recall, equity of Target is 580.

320/0.5 -580 gives you the excess patent value of 60.