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Amie, Inc., has 145,000 shares of $2 par value stock outstanding. Prairie Corporation acquired 43,500 of Amie's shares on January 1, 2015, for $174,000 when
Amie, Inc., has 145,000 shares of $2 par value stock outstanding. Prairie Corporation acquired 43,500 of Amie's shares on January 1, 2015, for $174,000 when Amie's net assets had a total fair value of $532,250. On July 1, 2018, Prairie bought an additional 87,000 shares of Amie from a single stockholder for $6 per share. Although Amie's shares were selling in the $5 range around July 1, 2018, Prairie forecasted that obtaining control of Amie would produce significant revenue synergies to justify the premium price paid. If Amie's identifiable net assets had a fair value of $738,750 at July 1, 2018, how much goodwill should Prairie report in its postcombination consolidated balance sheet? Multiple Choice $131,250. 72,500. $0 $73,250
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