X company acquired 90% of the voting stock of company Y by paying $75,000 in cash and stock. The fair value of the noncontrolling interest is $20,000. The book value of Y company is $56,000. Calculate the percentage of total goodwill that is allocated to the controlling interest according to U.S. GAAP? (Assume that no revaluations of acquired identifiable net assets is required.) A) 63% B) 67% C) 75% D) 90%
X company acquired 90% of the voting stock of company Y by paying $75,000 in cash and stock. The fair value of the noncontrolling interest is $20,000. The book value of Y company is $56,000. Calculate the percentage of total goodwill that is allocated to the controlling interest according to U.S. GAAP? (Assume that no revaluations of acquired identifiable net assets is required.) A) 63% B) 67% C) 75% D) 90%
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:X company acquired 90% of the voting stock of company Y by paying $75,000 in cash and stock.
The fair value of the noncontrolling interest is $20,000. The book value of Y company is $56,000.
Calculate the percentage of total goodwill that is allocated to the controlling interest according to
U.S. GAAP? (Assume that no revaluations of acquired identifiable net assets is required.)
A) 63%
B) 67%
C) 75%
D) 90%
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