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The amount of goodwill recognized by Palmer is

The amount of goodwill recognized by Palmer is

FINANCIAL ACCOUNTING
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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Palmer, Inc., acquired 75% of the outstanding shares of Soleil, Inc., for $3.9 million. At that time, Soleil had $7.2 million of total liabilities recorded at their fair value and $10.5 million of total recorded assets. The fair value of Soleil's assets was $11.8 million. Furthermore, Palmer had no previous equity interest in Soleil, and the acquisition-date fair value of the noncontrolling interest was $1,000,000. The amount of goodwill recognized by Palmer is O A. B. $1,300,000 $300,000 $700,000 O C. O D. $1,600,000
Transcribed Image Text:Palmer, Inc., acquired 75% of the outstanding shares of Soleil, Inc., for $3.9 million. At that time, Soleil had $7.2 million of total liabilities recorded at their fair value and $10.5 million of total recorded assets. The fair value of Soleil's assets was $11.8 million. Furthermore, Palmer had no previous equity interest in Soleil, and the acquisition-date fair value of the noncontrolling interest was $1,000,000. The amount of goodwill recognized by Palmer is O A. B. $1,300,000 $300,000 $700,000 O C. O D. $1,600,000
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