Question
On January 1, 20X1, the Husky Corporation acquired 90% of the Spartan Companys voting stock for $2,700,000. Spartans net assets had a book value of
On January 1, 20X1, the Husky Corporation acquired 90% of the Spartan Company’s voting stock for $2,700,000. Spartan’s net assets had a book value of $2,450,000; the fair value of Spartan’s building was $325,000 greater than its book value. The book value of Husky’s net assets immediately after the acquisition of Spartan totaled $6,850,000. What is the amount of goodwill reported on the January 1, 20X1 consolidated balance sheet?
A. $495,000
B. $202,500
C. $550,000
D. $225,000
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Financial Reporting And Analysis
Authors: Lawrence Revsine, Daniel Collins, Bruce Johnson, Fred Mittelstaedt, Leonard Soffer
8th Edition
1260247848, 978-1260247848
