Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Amie. Inc., has 100.000 shares of $2 par value slock outstanding. Prairit Corporation acquired 30.000 of Amic's shares on Jawuary L. 2018. for $120,000 when

image text in transcribed
image text in transcribed
Amie. Inc., has 100.000 shares of $2 par value slock outstanding. Prairit Corporation acquired 30.000 of Amic's shares on Jawuary L. 2018. for $120,000 when Amie's net assets had a total fair value of $350,000. On July I, 2021. Prairie boaght an adtional 60.000 shares of Amie from a single stockholder for $6 per share. Although Amie's shares were selling in the $5 nange around July 1.2021. Prairie forecassed that obtaining control of Amic would produce significant revenae syergies to justify the premium prise paid If Amic's identifable net assets had a fair value of $500,000 at July 1, 2021, how noch goodwill shouk Prairie report in its postcombination consolidated balance sheet? a $60,000 b $90,000 c $100,000 dS-0

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Managerial Accounting The Cornerstone of Business Decision Making

Authors: Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

7th edition

978-1337116008, 1337116009, 1337115770, 978-1337516150, 1337516155, 978-1337115773

More Books

Students also viewed these Accounting questions