Fundamentals of Advanced Accounting 5th Edition by Joe Ben Hoyle,Thomas Schaefer,Timothy Doupnik

Exercise 18

On January 1, Tesco Company spent a total of $4,384,000 to acquire control over Blondel Company. This price was based on paying $424,000 for 20 percent of Blondel's preferred stock and $3,960,000 for 90 percent of its outstanding common stock. At the acquisition date, the fair value of the 10 percent noncontrolling interest in Blondel's common stock was $440,000. The fair value of the 80 percent of Blondel's preferred shares not owned by Tesco was $1,696,000. Blondel's stockholders' equity accounts at January 1 were as follows:

Tesco believes that all of Blondel's accounts approximate their fair values within the company's financial statements. What amount of consolidated goodwill should be recognized
a.$300,000.
b.$316,000.
c.$364,000.
d.$520,000.