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A company pays $40,000 in cash and stock to acquire 65% of the voting stock of another company. The fair value of the 35% noncontrolling
A company pays $40,000 in cash and stock to acquire 65% of the voting stock of another company. The fair value of the 35% noncontrolling interest in the acquired company is $22,000. The book value of the acquired company is $25,000. At the date of acquisition, the acquired company's plant assets are overvalued by $6,000 and it has previously unreported identifiable intangible assets valued at $10,000. What is the total amount of goodwill recognized for this acquisition, following U.S. GAAP?
A. | $21,000 | |
B. | $37,000 | |
C. | $11,000 | |
D. | $33,000 |
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