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The Red Hen Is Acquiring the Chicken Coop for $375,000

Question 18

Multiple Choice

The Red Hen is acquiring The Chicken Coop for $375,000 cash.The fixed assets of The Chicken Coop have a market value of $315,000,and the net working capital is $38,000.What amount of goodwill,if any,will be recorded on the books of The Red Hen?


A) $60,000
B) $0
C) $22,000
D) $3,000
E) $35,000

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