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View the attached image and answer the following questions. (Hint: the answers are B for 1, D for 2, D for 3, and C for

View the attached image and answer the following questions. (Hint: the answers are B for 1, D for 2, D for 3, and C for 4 but I need the work so I know how to solve) image text in transcribed
Rivendell Corporation and Foster Company merged as of January 1,20X9. To effect the merger, Rivendell paid finder's fees of $40,000, legal fees of $13,000, audit fees related to the stock issuance of $10,000, stock registration fees of S5,000, and stock listing application fees of $4,000. 2. Based on the preceding information, under the acquisition method: A. $72,000 of stock issue costs are treated as goodwill. B. $19,000 of stock issue costs are treated as a reduction in the issue price. C. $19,000 of stock issue costs are expensed. D. $72,000 of stock issue costs are expensed. Plummet Corporation reported the book value of its net assets at $400,000 when Zenith Corporation acquired 100 percent ownership. The fair value of Plummet's net assets was determined to be $510,000 on that date. 3. Based on the preceding information, what amount of goodwill will be reported in consolidated financial statements presented immediately following the combination if Zenith paid $550,000 for the acquisition? A. $0 B. $50,000 $150,000 $40,000 4. Based on the preceding information, what amount will be recorded by Zenith as its investment in Plummet, if it paid $500,000 for the acquisition? A. $610,000 B. $400,000 C. $500,000 $510,000 5. The fair value of net identifiable assets of a reporting unit of X Company is $300,000. On X Company's books, the carrying value of this reporting unit's net assets is $350,000, including $60,000 goodwill. If the fair value of the reporting unit as a whole is $335,000, what amount of goodwill impairment will be recognized for this unit? A. SO B. $10,000 Fu 335 C. $25,000 D. $35,000

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