Par Inc purchased 72.37% of Sub Corp's total outstanding voting shares for $331,927 on January 1, Year 3. The carrying value of Sub's identifiable net assets was $284,506 on that date. All of Sub's assets and liabilities had their fair values and carrying values the same, except for a Patent whose fair value was $47,412 higher on the date of acquisition. On the next day, Par sold 10.53% of its Sub shares on the open market for $54,771. What is the amount of Goodwill arising from the acquisition on January 1? O a $282,881 O b. $290,738 Oc. $298,596 O d. $314,312 $306,454
Par Inc purchased 72.37% of Sub Corp's total outstanding voting shares for $331,927 on January 1, Year 3. The carrying value of Sub's identifiable net assets was $284,506 on that date. All of Sub's assets and liabilities had their fair values and carrying values the same, except for a Patent whose fair value was $47,412 higher on the date of acquisition. On the next day, Par sold 10.53% of its Sub shares on the open market for $54,771. What is the amount of Goodwill arising from the acquisition on January 1? O a $282,881 O b. $290,738 Oc. $298,596 O d. $314,312 $306,454
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:Par inc purchased 72.37% of Sub Corp's total outstanding voting shares for $331,927 on January 1, Year 3. The carrying
value of Sub's identifiable net assets was $284,506 on that date. All of Sub's assets and liabilities had their fair values
and carrying values the same, except for a Patent whose fair value was $47,412 higher on the date of acquisition. On
the next day, Par sold 10.53% of its Sub shares on the open market for $54,771. What is the amount of Goodwill
arising from the acquisition on January 1?
O a. $282,881
O b. $290,738
O. $298,596
O d. $314,312
O e. $306,454
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