Company A acquired all the outstanding common stock of Company B for $46,000,000 in cash. The book values and fair values of Company B assets and liabilities were as follows:

Book Value Fair Value
Current assets $ 17,000,000 $ 20,000,000
Property, plant, and equipment 31,600,000 37,600,000
Other assets 5,400,000 6,400,000
Current liabilities 9,800,000 9,800,000
Long-term liabilities 17,200,000 16,200,000

Required:
Calculate the amount paid for goodwill.

$8,000,000

Explanation:

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

Net fair value of assets acquired = (Fair Value of current assets + Fair value of Property, plant, and equipment + Fair value of other assets) - (Fair value of Current liabilities + Fair value of  Long-term liabilities)

= ($20,000,000 + $37,600,000 + $6,400,000) - ($9,800,000 + $16,200,000)

= $64,000,000 - $26,000,000

= $38,000,000

Amount paid for goodwill = Outstanding common stock - Net fair value of assets acquired

= $46,000,000 - $38,000,000

= $8,000,000

So, for computing the amount paid for goodwill we simply applied the above formula.

the correct answer is:

it required the president to inform congress within forty-eight hours of any new troop commitment.

the war powers resolution (1973) is a federal law designed to limit the u.s. president’s ability to initiate or intensify military actions abroad without the approval of the congress.

it establishes that the president can send armed forces into action abroad only by declaration of war by congress, statutory authorization, or in case of a national emergency created by attack upon the united states, its territories or possessions, or its armed forces.

it requires the president to notify congress within 48 hours of sending armed forces to military action.