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Ivy,Incorporated,purchased All the Common Stock of Harrell Company for $2,000,000

Question 13

Multiple Choice

Ivy,Incorporated,purchased all the common stock of Harrell Company for $2,000,000.Harrell's net assets had a book value of $1,200,000 and a fair market value of $1,500,000.What amount of goodwill should Ivy record as a result of this transaction?


A) $0
B) $300,000
C) $500,000
D) $700,000

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