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CONCEPTS IN FED.TAX.,2020-W/ACCESS

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter9: Acquisitions Of Property

Section: Chapter Questions

Problem 44P

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The Westfield Corporation purchased the Sterling Company for
$750,000 cash. The fair market value of Sterling's assets was
$680,000 and the company had liabilities of $45,000. What
amount of goodwill should Westfield record related to the
purchase of Sterling Company?
A. $70,000
B. $115,000
C. $25,000
D. $0

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