Question
On April 1, 19X6, Place Company paid $400,000 for all the issued and outstanding common stock of Show Corporation in a transaction properly accounted for
On April 1, 19X6, Place Company paid $400,000 for all the issued and outstanding common stock of Show Corporation in a transaction properly accounted for as a purchase. Show Corporation was dissolved. Shows book shows assets and liabilities on April 1, 19X6, as follows:
Cash $ 40,000
Inventory 120,000
Property and equipment (net of accumulated
depreciation of $160,000) 240,000
Liabilities (90,000)
On April 1, 19X6, the current value of Shows inventory was $95,000, and its property and equipment (net) had a current value of $280,000. What is the amount of goodwill as a result of the business combination?
| A. | $-0- | |
| B. | $25,000 | |
| C. | $90,000 | |
| D. | $75,000 |
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Budget Responsibility And National Audit Bill Source Book Edition Current Political Debates Of The UK Parliament 55th Parliament Volume
Authors: Jeff Nelson
1st Edition
3845468017, 978-3845468013
