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Woan Inc

Accounting

Woan Inc. acquired 100% of the voting common stock of Franco Inc. on January 1, 2013.  The book value and fair value of Franco's accounts on that date (prior to creating the combination) follow, along with the book values of Woan's accounts:

 

Woan

Franco

Franco

 

Book

Book

Fair

 

Value

Value

Value

Retained earnings, 1/1/15

$250,000

$240,000

 

Cash and receivables

  170,000

    70,000

$70,000

Inventory

  230,000

  170,000

210,000

Land

  280,000

  220,000

240,000

Buildings (net)

  480,000

  240,000

270,000

Equipment (net)

  120,000

    90,000

  90,000

Liabilities

  650,000

  430,000

420,000

Common stock

  360,000

    80,000

 

Additional paid-in capital

    20,000

    40,000

 

Assume that Woan issued 12,000 shares of common stock with a $5 par value and a $47 fair value to obtain all of Franco's outstanding stock.  In this acquisition transaction, how much goodwill should be recognized?

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