What amount of goodwill will be reported? a. $0 b. $23,000 c. $43,000 d. $58,000 Pocket Corporation

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What amount of goodwill will be reported?

a. $0

b. $23,000

c. $43,000

d. $58,000 

Pocket Corporation acquired 100 percent of Strap Corporation’s common stock on December 31, 20X2. Balance sheet data for the two companies immediately following the acquisition follow:

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At the date of the business combination, the book values of Strap’s net assets and liabilities approximated fair value except for inventory, which had a fair value of $85,000, and land, which had a fair value of $45,000.
Required

 Indicate the appropriate total that should appear in the consolidated balance sheet prepared immediately after the business combination.

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Advanced Financial Accounting

ISBN: 9781260165111

12th Edition

Authors: Theodore Christensen, David Cottrell, Cassy Budd

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