On July 1, 2022 an investor paid $3.330,000 for 100% of the voting common stock of an investee. The transaction qualifies as a business combination. At that time, investee had the following summarized balance sheet information: July 1, 2022 $450.000 Current assets Plant and equipment, net 2,520,000 Liabilities Equity 1.260.000 1.710.000 On July 1, 2022, the fair value of the plant and equipment was $630,000 more than its carrying amount. The acquisition-date fair values approximated their recorded book values for all of the remaining individual net assets of the investee. Related to this transaction, what amount of goodwill must the investor report in its post-acquisition consolidated balance sheet on July 1, 20227 C$630,000 C$1,620,000 O$990,000 C$2,250,000

On July 1, 2022 an investor paid $3.330,000 for 100% of the voting common stock of an investee. The transaction qualifies as a business combination. At that time, investee had the following summarized balance sheet information: July 1, 2022 $450.000 Current assets Plant and equipment, net 2,520,000 Liabilities Equity 1.260.000 1.710.000 On July 1, 2022, the fair value of the plant and equipment was $630,000 more than its carrying amount. The acquisition-date fair values approximated their recorded book values for all of the remaining individual net assets of the investee. Related to this transaction, what amount of goodwill must the investor report in its post-acquisition consolidated balance sheet on July 1, 20227 C$630,000 C$1,620,000 O$990,000 C$2,250,000

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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