Amie, Incorporated, has 185,000 shares of $1 par value stock outstanding. Prairie Corporation acquired 55,500 of Amie's shares on January 1, 2021, for $111,000 when Amie's net assets had a total fair value of $437,000. On July 1, 2024, Prairie bought an additional 111,000 shares of Amie from a single stockholder for $4 per share. Although Amie's shares were selling in the $3 range around July 1, 2024, Prairie forecasted that obtaining control of Amie would produce significant revenue synergies to justify the premium price paid. If Amie's identifiable net assets had a fair value of $582,000 at July 1, 2024, how much goodwill should Prairie report in its postcombination consolidated balance sheet? Multiple Choice $84,000 50 $55.500 $158.000
Amie, Incorporated, has 185,000 shares of $1 par value stock outstanding. Prairie Corporation acquired 55,500 of Amie's shares on January 1, 2021, for $111,000 when Amie's net assets had a total fair value of $437,000. On July 1, 2024, Prairie bought an additional 111,000 shares of Amie from a single stockholder for $4 per share. Although Amie's shares were selling in the $3 range around July 1, 2024, Prairie forecasted that obtaining control of Amie would produce significant revenue synergies to justify the premium price paid. If Amie's identifiable net assets had a fair value of $582,000 at July 1, 2024, how much goodwill should Prairie report in its postcombination consolidated balance sheet? Multiple Choice $84,000 50 $55.500 $158.000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Hansaben
Transcribed Image Text:Amie, Incorporated, has 185,000 shares of $1 par value stock outstanding. Prairie Corporation acquired 55,500 of Amie's shares on January 1, 2021, for
$111,000 when Amie's net assets had a total fair value of $437,000. On July 1, 2024, Prairie bought an additional 111,000 shares of Amle from a single
stockholder for $4 per share. Although Amie's shares were selling in the $3 range around July 1, 2024, Prairie forecasted that obtaining control of Amie
would produce significant revenue synergies to justify the premium price paid. If Amie's identifiable net assets had a fair value of $582,000 at July 1,
2024, how much goodwill should Prairie report in its postcombination consolidated balance sheet?
Multiple Choice
$84,000
50
$55.500
$158.000
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 3 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education