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On January 1, 2019, Karen Inc. paid $1,700,000 for all of Hanchon Corp.'s common stock. On that date the costs and fair values of Hanchon's
On January 1, 2019, Karen Inc. paid $1,700,000 for all of Hanchon Corp.'s common stock. On | ||||
that date the costs and fair values of Hanchon's recorded assets and liabilities were as follows: | ||||
Cost | Fair Value | |||
Cash | 160,000 | 160,000 | ||
Inventory | 480,000 | 500,000 | ||
Equipment | 980,000 | 1,040,000 | ||
Liabilities | (360,000) | (360,000) | ||
Net Assets | 1,260,000 | 1,340,000 | ||
In Karen's December 31, 2019 consolidated balance sheet, what amount of goodwill | ||||
should be reported as a result of the acquisition? |
Question 5 options:
| $400,000 |
| $360,000 |
| $440,000 |
| $396,000 |
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