On January 1, 2018, Como Company purchased 45% of the outstanding common shares of the Lite Company for $200,000. The net assets of Lite Company totaled $400,000. The inventory had a book value of $100,000 and a fair value of $120,000. Excess cost attributable to inventory is written off in 2018. During 2018, Lite Company earned $200,000 and declared a dividend of $40,000 for the year.The amount of goodwill implicit in Como's transaction is
A. $22,000.
B. $20,000.
C. $11,000.
D. $9,000.
Answer: C
Business
You might also like to view...
On september 1 their will be an 5% increase on the dental insurance premiums
What will be an ideal response?
Business
The flat organizational model promotes the involvement of employees through a decentralized decision-making process
Indicate whether the statement is true or false
Business
Every corporation is recognized and treated under the law as ________.
A. an entity, much like a person, that has expenses and earnings B. a small business C. a large business D. if it were its owners and employees
Business
Information integrity comprises rules that help ensure the quality of information.
Answer the following statement true (T) or false (F)
Business