Question
Dodd Co. acquired 75% of the common stock of Wallace Corp. for $1,800,000. The fair value of Wallaces net assets was $2,100,000, and the book
Dodd Co. acquired 75% of the common stock of Wallace Corp. for $1,800,000. The fair value of Wallaces net assets was $2,100,000, and the book value was $1,900,000. The non-controlling interest shares of Wallace Corp. are not actively traded.
A- What is the total amount of goodwill recognized at the date of acquisition? a- 0 b- 100,000 c- 200,000 d- 300,000 e- 700,000
B- What amount of goodwill should be attributed to Dodd at the date of acquisition? a- 0 b- 75,000 c- 150,000 d- 225,000 e- 300,000
C- What amount of goodwill should be attributed to the noncontrolling interest at the date of acquisition? a- 0 b- 25,000 c- 50,000 d- 75,000 e- 175,000
PLEASE ANSWER QUESTIONS A, B, AND C AND EXPLAIN WHY/HOW?
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