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Acquirer Company buys Target Company. Targets pre-acquisition balance sheet at historical cost showed Total Assets at $630,000 and Total Liabilities at $420,000. Upon acquisition, Acquirer
Acquirer Company buys Target Company. Targets pre-acquisition balance sheet at historical cost showed Total Assets at $630,000 and Total Liabilities at $420,000. Upon acquisition, Acquirer revalued Targets assets at $780,000 and liabilities at $357,000. In addition, Acquirer paid $885,000 for the acquisition of Target. Determine the amount of Goodwill Acquirer must recognize for the acquisition of Target.
a. $150,000
b. $462,000
c. $213,000
d. $780,000
e. $63,000
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