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Goodwill, Pensions, and Stock Options
Balance Sheet Thunder Inc. Assets –Cash = $100 Liabilities –None Bookvalue = $100
Lightening Inc. Assets –Plant and equipment = $100 Liabilities –Long term debt = $50 Bookvalue = = 50
Thunder Buys Lightening for $100 Assets –Cash = 0 –Plant and equipment = $100 –Goodwill = $50 (purchase price - book) Liabilities –Long term debt = $50 New book value (Thunder) = = 100
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