Appraisal Economics Inc. has conducted a purchase price allocation of a North American-based integrated manufacturer and wholesaler of branded and private label paper products. The company produces and sells paper towels, bathroom tissue, and napkins for the “at-home” and “away-from-home” markets. A publicly traded company purchased the business for cash and restricted shares. Appraisal Economics valued the restricted shares to determine the fair value of the consideration paid for the company, and then allocated the purchase price among the financial, tangible, and intangible assets of the company. The assets included machinery and equipment, contracts, a license to use the seller’s trade name, a non-compete agreement, 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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