Question
Band company bought the shares of the one of its affiliates for $100.000, on the date of the purchase the net assets of the affiliate
Band company bought the shares of the one of its affiliates for $100.000, on the date of the purchase the net assets of the affiliate had a book value of $75,000. Bandit allocated $20,000 of the excess to undervalued building.to what account should the remaining excess be allocated?
A) Goodwill
B) Ordinary Shares
C) Retained Earnings
D) Revenue from investment in affiliates
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Answer A Goodwill Goodwill is an intangible asset that is assoc...
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Corporate Finance
Authors: Jonathan Berk and Peter DeMarzo
3rd edition
978-0132992473, 132992477, 978-0133097894
