On October 1, 20X3, Pole Corporation paid $450,000 for all of Stick Company's outstanding common stock. On that date, the book values and fair values of Stick's recorded assets and liabilities were as follows: Book ValueFair ValueCash and Receivables$75,000 $75,000 Inventory 155,000 160,000 Buildings and Equipment (net) 260,000 320,000 Liabilities (150,000) (150,000) Net Assets$340,000 $405,000 Based on the preceding information, what amount should be allocated to goodwill in the consolidated balance sheet prepared immediately after the combination?
A. $0.
B. $110,000.
C. $65,000.
D. $45,000.
Answer: D
You might also like to view...
Net cash flow from operations -________________ -dividends equals_______________________
Fill in the blank(s) with correct word
Taxing authorities are considered accounting information users with an indirect financial interest
Indicate whether the statement is true or false
Which of the following is the most accurate statement about the globalization of markets?
A) Although market borders are blurring, it is still easy to determine the nationality of companies. B) Many U.S. companies with famous brands are now controlled by global enterprises. C) Doing business beyond borders is common only for U.S. companies. D) Because many companies are multinational, cultural differences are not as important.
For what activities do an organization's managers need accounting information?
What will be an ideal response?