# Calculate Fair Value - Excel

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```					Step 1 Calculate Fair Value of Identifiable Net Assets

Assets                            Amount                 Liabilities                         Amount

Total Fair Value of Assets                               Total Fair Value of Liabilities

Total Fair Value of Assets
Total Fair Value of Liabilities
Fair Value of Identifiable Net Assets

Step 2 Calculate Cost of Acquisition
There are no other costs associated with this
Purchase Consideration            Amount                 business combination. So the Cost of
Acquisition is equal to the Purchase
Consideration.

Step 3 Calculate Goodwill

Cost of Acquisition
Fair Value of Identifiable Net Assets                    Check that Cost of Acquisition > Fair Value
Goodwill                                               0 of Identifiable Net Assets.

Step 4 Record Journal Entries in the Acquirer's books at Date of Acquisition

Amount                         Debit       Credit

Check that total debits equal total credits

Step 5 Record Journal Entries in the Acquirer's books when paying consideration

Amount                         Debit       Credit

```
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