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Advanced Accounting 10th Edition by Thomas Schaefer, Joe Ben Hoyle, Timothy Doupnik
Edition 10ISBN: 978-1260575910Advanced Accounting 10th Edition by Thomas Schaefer, Joe Ben Hoyle, Timothy Doupnik
Edition 10ISBN: 978-1260575910 Exercise 8
On January 1, Morgan Company has a net book value of $1,460,000 as follows: 
Leinen Company acquires all outstanding preferred shares for $106,000 and 60 percent pf the common stock for $870,000.The acquisition-date fair value of the noncontrolling interest in Morgan's common stock was $580,000.Leinen believed that one of Morgan's buildings, with a 12-year life, was undervalued by $50,000 on the company's financial records.
What amount of consolidated goodwill would be recognized from this acquisition
a.$40,000.
b.$41,200
c.$42,400.
d.$46,000.
Leinen Company acquires all outstanding preferred shares for $106,000 and 60 percent pf the common stock for $870,000.The acquisition-date fair value of the noncontrolling interest in Morgan's common stock was $580,000.Leinen believed that one of Morgan's buildings, with a 12-year life, was undervalued by $50,000 on the company's financial records.What amount of consolidated goodwill would be recognized from this acquisition
a.$40,000.
b.$41,200
c.$42,400.
d.$46,000.
Explanation
Verified
Verified
D.
Consideration transferred for preferr...
Advanced Accounting 10th Edition by Thomas Schaefer, Joe Ben Hoyle, Timothy Doupnik
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