Question
Hyena Corporation pays $700,000 for Quinton Company. Quinton has two assets. The first is a building with a book value of $200,000 and a fair
Hyena Corporation pays $700,000 for Quinton Company.
Quinton has two assets.
The first is a building with a book value of $200,000 and a fair value of $300,000.
The second is a patent with a book value of $10,000 and a fair value of $250,000.
What amount is reported as goodwill as part of this sale? (Choose the one correct answer.)
| a. | $490,000 | |
| b. | $390,000 | |
| c. | $150,000 | |
| d. | $140,000 | |
| e. | $250,000 |
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Internal Audit In Higher Education
Authors: Alison Holmes, Sally Brown
1st Edition
0749433000, 978-0749433000
