Solved

On January 1,20X5,Seaside Company Acquires 90 Percent Ownership in Rainbow

Question 17

Multiple Choice

On January 1,20X5,Seaside Company acquires 90 percent ownership in Rainbow Corporation for $180,000.The fair value of the noncontrolling interest at that time is determined to be $20,000.Rainbow reports net assets with a book value of $160,000 and fair value of $175,000.Seaside Company reports net assets with a book value of $480,000 and a fair value of $525,000 at that time,excluding its investment in Rainbow.What will be the amount of goodwill that would be reported immediately after the combination?


A) $5,000
B) $20,000
C) $25,000
D) $40,000

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Q3: On January 3,20X9,Pleat Company acquired 80 percent

Q4: Consolidated financial statements are required by GAAP

Q15: Cosby Corporation acquired 60 percent of Huxtable

Q16: On January 1,20X8,Zeta Company acquired 85 percent

Q19: Princeton Company acquired 75 percent of the

Q20: Xing Corporation owns 80 percent of the

Q21: On January 1,20X8,Potter Corporation acquired 90 percent

Q22: Quid Corporation acquired 75 percent of Pro

Q31: On January 2,20X2,Piranha Company acquired 70 percent

Q39: Consolidated financial statements tend to be most