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A company pays $50 million in cash to acquire 80% of the stock of another company. The fair value of the noncontrolling interest at the
A company pays $50 million in cash to acquire 80% of the stock of another company. The fair value of the noncontrolling interest at the date of acquisition is $8 million, and the book value of the acquired company is $4 million. There are no revaluations of the acquired companys identifiable net assets. Goodwill to the noncontrolling interest, following U.S. GAAP, is?
a. $-0-
b. $3.2 million
c. $7.2 million
d. $8.0 million
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