Perch Co. acquired 80% of the common stock of Float Corp. for $1,600,000. The fair value of Float's net assets was $1,850,000, and the book value was $1,500,000. The noncontrolling interest shares of Float Corp. are not actively traded.What amount of goodwill should be attributed to Perch at the date of acquisition?
A. $170,000.
B. $120,000.
C. $0.
D. $150,000.
E. $250,000.
Answer: B
You might also like to view...
If the three highest-level ethical theories are in conflict about what to do in a situation, what is considered to be the most important ethical choice?
a. trying to improve the lives of the majority of affected people b. pursuing the greatest good c. seeking to do the least amount of harm d. respecting everyone and acting virtuously
Because customers have different needs and expectations, the key to distributive fairness in service recovery is to
A. provide a fair solution. B. resolve the problem quickly. C. estimate the damage. D. listen to the customer. E. contact a supervisor quickly.
In the decision-making process, you can receive too much information
Indicate whether the statement is true or false
When Starbucks introduced its instant coffee brand, Via, the company sold it in packages of three single-cup units. Starbucks' primary objective for selling Via in three-unit packages rather than single-unit packages was most likely
A. to encourage the consumer to try the product several times. B. to encourage a higher consumption of all Starbucks products. C. to sell more because of infrequent coffee purchases. D. to reduce costs in the distribution and handling of the Via products. E. to engage in environmentally responsible behavior.