Multiple Choice
The balance sheet of Flo's Restaurant showed total assets of $700,000, liabilities of $240,000 and stockholders' equity of $460,000. An appraiser estimated the fair value of the restaurant assets at $840,000. If Alice Company pays $1,185,000 cash for the restaurant, what is the amount of goodwill?
A) $345,000
B) $485,000
C) $585,000
D) $675,000
Correct Answer:
Verified
Correct Answer:
Verified
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