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Stock Acquisition Use the following to answer the three questions below On December 31, 2020, P Company acquired 90% of the outstanding common stock of

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Stock Acquisition Use the following to answer the three questions below On December 31, 2020, P Company acquired 90% of the outstanding common stock of S Company for $ 1,980,000 cash. The following table shows the Computation and allocation of Difference (CAD) on that date, with some missing figures: CAD Purchase Price & Implied Value CI 1.980.000 NCI A Total B Book Value S Equity CS at S OCC at S RE at S TS at S 630,000 540,000 720,000 E 60.000 80.000 10.000 D 600,000 800,000 F Difference between IV & BV G H I Assume that any difference between the book value of net assets and the value implied by the purchase price relates to subsidiary land and to goodwill. The land in the subsidiary's books had a value of $85,000 while its fair value on that date was $137,000. In the CAD schedule, * A is $220,000, C is $70,000, and F is $100,000 A is $198,000, C is $63,000, and F is $90,000 O A is $198,000, C is $70,000, and Fis $110,000 None of the above While preparing the elimination entry, the difference between the implied value and the book value should be: * Debited by $200,000 Debited by $178,000 Credited by $178,000 None of the above Because of the difference between the implied value and the book value, the goodwill should be: * Debited by $52,000 Debited by $200,000 Debited by $ 148,000 O No goodwill is to be recorded

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