Appraisal Economics Inc. has conducted a purchase price allocation of a fully-integrated paper mill in the Pacific Northwest. A private equity firm acquired the producer of containerboard, kraft and specialty papers, unbleached kraft pulp, and corrugated packaging for total consideration in excess of $100 million. The company operates a pulp and paper mill that processes raw timber and recycles old cardboard boxes and sells its products primarily in North America and Asia. Appraisal Economics allocated the purchase price among the financial, tangible, and intangible assets of the company. The assets included real property in two countries, machinery and equipment, favorable power purchase agreements, trademarks, customer relationships, and goodwill. Once goodwill is placed on the balance sheet due to an acquisition, it is tested at least annually for impairment.

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