Fox Co Acquired 60% of Sox Co $\begin{array} { l c } \text { Parent-company extension } & \text { Entity } \\\end{array}$

Short Answer

Fox Co. acquired 60% of Sox Co. for $900,000. At the acquisition date, Sox had net assets with a book value of $950,000 and a fair value of $1,200,000. What is the amount of goodwill that should be reported on the consolidated SFP under the parent-company extension method and under the entity method? $\begin{array} { l c } \text { Parent-company extension } & \text { Entity } \\\end{array}$
A) $\begin{array} { l c } &&&&\$ 0 &&&&&&& \$ 180,000 \\\end{array}$
B) $\begin{array} { l c } &&&& \$ 0 &&&&&&& \$ 300,000 \\\end{array}$
C) $\begin{array} { l c } &&&& \$ 120,000 &&&& \$ 180,000 \\\end{array}$
D) $\begin{array} { l c } &&&&\$ 300,000 &&&& \$ 300,000\end{array}$