On April 31, 2019, Y acquired for $950000 cash in exchange of 90% of the outstanding common stocks of Xwhen X's balance sheet showed net assets of $1000000 at the FMV. The business combination costs were$100000 indirect costs and $200000 direct costs. The goodwill isa. 60000O b. NO ANSWERO c. 35000d. 50000choice

Goodwill - When a business is acquired by another, goodwill is an intangible asset that is…

Answered: On April 31, 2019, Y acquire when X's…

On April 31, 2019, Y acquire when X's balance sheet sho $100000 indirect costs and a. 60000 O b. NO ANSWER O c. 35000 O d. 50000

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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Concept explainers

Contingent Liabilities and Provisions

A contingent liability can be defined as a liability the occurrence of which is dependent upon the happening of an uncertain future event. It is generally recorded in the books only when the amount of liability can be reasonably estimated and the contingency is likely to occur shortly.

Question

On April 31, 2019, Y acquired for $950000 cash in exchange of 90% of the outstanding common stocks of X
when X's balance sheet showed net assets of $1000000 at the FMV. The business combination costs were
$100000 indirect costs and $200000 direct costs. The goodwill is
a. 60000
O b. NO ANSWER
O c. 35000
d. 50000
choice

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