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Fundamentals of Advanced Accounting 5th Edition by Joe Ben Hoyle,Thomas Schaefer,Timothy Doupnik
Edition 5ISBN: 978-1260575910Fundamentals of Advanced Accounting 5th Edition by Joe Ben Hoyle,Thomas Schaefer,Timothy Doupnik
Edition 5ISBN: 978-1260575910 Exercise 27
On January 1, Morgan Company has a net book value of $1,460,000 as follows:
Leinen Company acquires all outstanding preferred shares for $106,000 and 60 percent pf the common stock for $870,000. The acquisition-date fair value of the noncontrolling interest in Morgan's common stock was $580,000. Leinen believed that one of Morgan's buildings, with a 12-year life, was undervalued by $50,000 on the company's financial records.
What amount of consolidated goodwill would be recognized from this acquisition
A)$40,000.
B)$41,200
C)$42,400.
D)$46,000.
Leinen Company acquires all outstanding preferred shares for $106,000 and 60 percent pf the common stock for $870,000. The acquisition-date fair value of the noncontrolling interest in Morgan's common stock was $580,000. Leinen believed that one of Morgan's buildings, with a 12-year life, was undervalued by $50,000 on the company's financial records.
What amount of consolidated goodwill would be recognized from this acquisition
A)$40,000.
B)$41,200
C)$42,400.
D)$46,000.
Explanation
Verified
Verified
Consideration transferred for preferred ...
Fundamentals of Advanced Accounting 5th Edition by Joe Ben Hoyle,Thomas Schaefer,Timothy Doupnik
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