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Can someone explain how to get the answer providing formulas and calculations? Thank you 289) Parent Co. purchased the entire business of Subsidiary Co. including
Can someone explain how to get the answer providing formulas and calculations? Thank you
289) Parent Co. purchased the entire business of Subsidiary Co. including all its assets and liabilitie:s for $600,000. Below is information related to the two companies: Subsidiary Parent $1,050,000 $800,000 Fair value of assets Fair value of liabilities 575,000 300,000 650,000 Reported assets 800,000 Reportedliabilities 500,000 250,000 Net Income for the year 60,000 50,000 How much goodwill did Parent pay for acquiring Subsidiary? B) S200,000. A) $150,000. C) $300,000 D) $100,000Step by Step Solution
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