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What is the amount of Goodwill

What is the amount of Goodwill

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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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
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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