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.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. $50,000
B. $40,000
C. $150,000
D. $0
Answer: B
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An auditor adjusts the audit plan by introducing unexpected audit procedures in response to what the auditor believes management may be doing to conceal a fraud based on management's strategic reasoning. Which order of reasoning is occurring here?
a. Low-order reasoning b. Zero-order reasoning c. Higher-order reasoning d. First-order reasoning
Toll-free telephone numbers that employees can use anonymously to report waste, fraud, or abuse are examples of a(n):
A. ethical dilemma. B. grievance procedure step. C. employee-voice system. D. union intervention.
Production cost reports prepared using the first-in, first-out (FIFO) method assume that the first units started in the production process are the first units completed and transferred out
Indicate whether the statement is true or false
Hormel Food Corp decided to put a much larger share of its promotion budget into ____ because of the heavy reliance it will be placing on coupons in the second quarter.
A. advertising B. sales promotion C. public relations D. telemarketing E. personal selling