On March 31, 2010, P Corporation acquired for $1,000,000 cash all the outstanding common stocks of Scompany when S's balance sheet showed net assets of $1,100,000 at the FMV. Out-of-pocket cost of the business combination was $100,000 indirect costs and $200,000 direct costs. The goodwill is a. $150,000 negative goodwill o b. $100,000 positive goodwill o c. $300,000 positive goodwill d. $300,000 negative goodwill o Ali and Ahmad have AY LLP. On January 1, 2016 the capital balances are $20000 for Ali and Ahmad $30000. On March 1 Ali invest $2000. On August 1 Ali withdrew $1000. On May 1 Ahmad invests $4000. On September 1 Ahmad withdrew $2000. AY achieved $20000 net income. The average capital balance of Ali is .a. 32000 .b. 12018 e .c. 7981 @ d. 21250 On Jan 1, 2011, X Company acquired 15% of the voting common stocks of Z Company for $200000. The intent of X is to hold the shares for five years. Z Company achieved $100000 net income and announced $80000 cash dividends. On December 31, :2011. The account of "stock investment in Z" in X books will be a. $300,000 b. $700,000 c. $600,000 d. $200,000 Incorporation is the process of converting the proprietorships into corporation a. False b. True o