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On February 28, 2020, Alpha Corporation acquired 90% of the outstanding common stock of Bita Company for $500,000 cash. Out-of-pocket costs of the business combination
On February 28, 2020, Alpha Corporation acquired 90% of the outstanding common stock of Bita Company for $500,000 cash. Out-of-pocket costs of the business combination paid byAlpha on February 28, 2020, were in the form of Finders and legal fees relating to business combination $50,000 and Costs associated with SEC registration statement $10,000,only the fair value of plant assets exceeds its carrying amount by $90,000, net assets of Bita $400,000. The amount of goodwill is:
a.
$20,000
b.
$70,000.
c.
68,000
d.
$118,000.
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