B Corporation acquired 100% of C Corporation's outstanding capital stock for $430,000 cash. Immediately before the purchase, the balance sheets of both corporations reported the following: B Assets $2,000,000 $750,000 Liabilities $ 750,000 $400,000 Common Stock 1,000,000 310,000 Retained Earnings 250,000 40,000 At the date of purchase, the fair value of C assets was $50,000 more than the book value. In conselidated balance sheet prepared immediately after the purchase, the consolidated goodwill should ameunt to Setect one: a. 30,000 b. 50,000 C. 40,000 d. 60,000

B Corporation acquired 100% of C Corporation's outstanding capital stock for $430,000 cash. Immediately before the purchase, the balance sheets of both corporations reported the following: B Assets $2,000,000 $750,000 Liabilities $ 750,000 $400,000 Common Stock 1,000,000 310,000 Retained Earnings 250,000 40,000 At the date of purchase, the fair value of C assets was $50,000 more than the book value. In conselidated balance sheet prepared immediately after the purchase, the consolidated goodwill should ameunt to Setect one: a. 30,000 b. 50,000 C. 40,000 d. 60,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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