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Pratt Company buys 65% of the voting stock of Sully Corporation at a 40% premium over the market price of Sullys stock. Which statement is

Pratt Company buys 65% of the voting stock of Sully Corporation at a 40% premium over the market price of Sullys stock. Which statement is most likely to be true concerning the goodwill resulting from this acquisition?

Question 4 options:

a)

The goodwill allocation to Pratt is more than 65% of the total goodwill

b)

All goodwill is allocated to the noncontrolling interest in Sully

c)

Goodwill is allocated 65% to Pratt and 35% to the noncontrolling interest in Sully

d)

Goodwill is allocated 60% to Pratt and 40% to the noncontrolling interest in Sully

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