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On March 31, Freemont Paper Products Company (Freemont) purchased an 80% equity interest in Conley Paper Company (Conley) for $180,000,000 in cash. The fair value
On March 31, Freemont Paper Products Company (Freemont) purchased an 80% equity interest in Conley Paper Company (Conley) for $180,000,000 in cash. The fair value of Freemont is $225,000,000. On the date of acquisition, the fair value and carrying amount of Conley's net identifiable assets was $175,000,000 and $155,000,000, respectively. Assuming that Freemont adheres to IFRS and that the partial goodwill method is used, what is the amount of goodwill recognized by Freemont for the purchase of Conley at the date of acquisition? O $5,000,000 $40,000,000 O $50,000,000 $56,000,000
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