On December 31, 2022,P Co acquared 100% ownership of S Co. On that date, s reported assetsand abilities with book values of $300,000 and $100.000, respectively, common stockoutstanding of $50,000, and retained earnings of $150,000. The back values and fair values of Sassets and liabilities were equal except for land which had increased in value by $10,000 andinventaries which had decreased by $10,000 1Based on the preceding information, what amount of goodwill balance immediately after thebusiness combination, if the acquisition price was $240,000?Select one:a. 30,000b. 45.00035,000d: 40,000

Goodwill is an immaterial asset that is linked to one company's acquisition from another. In…

On December 31, 2022,P Co acquared 100% ownership of 5 Co. On that date, s reported assets and abilities with book values of $300,000 and $100.000, respectively, common stock outstanding of $50,000, and retained earnings of $150,000. The book values and fair values of s assets and abilities were equal except for land which had increased in value by $10,000 and inventaries which had decreased by $10,000 Based on the preceding information, what amount of goodwill balance immediately after the business combination, if the acquisition price was $240.0007 Select one: O a 30,000 Ob. 45.000 € 35,000 Od 40.000

On December 31, 2022,P Co acquared 100% ownership of 5 Co. On that date, s reported assets and abilities with book values of $300,000 and $100.000, respectively, common stock outstanding of $50,000, and retained earnings of $150,000. The book values and fair values of s assets and abilities were equal except for land which had increased in value by $10,000 and inventaries which had decreased by $10,000 Based on the preceding information, what amount of goodwill balance immediately after the business combination, if the acquisition price was $240.0007 Select one: O a 30,000 Ob. 45.000 € 35,000 Od 40.000

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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