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QUESTION 5 On June 30, 2016 the Suslava Company purchased 100% of the outstanding stock of Desai Ing. Just prior to the acquisition there is
QUESTION 5 On June 30, 2016 the Suslava Company purchased 100% of the outstanding stock of Desai Ing. Just prior to the acquisition there is $1.325,000 of goodwill on the books of Susiava and $625,000 of goodwill on the books of Desai. In determining the fair value of the acquisition, the accountants for Sustava allocated $550,000 of the purchase price to goodwill. The consolidated goodwill after the acquisition should total A. $1,800,000 B. $550,000 C. $1,175,000 D. $2,500,000 E. $1,875,000
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