On January 1, 2014, Malibu Corporation paid $700,000 to purchase 90% of outstanding stock of Balam Corporation. Any excess fair value over the identifed assets and liabilities is atributed to goodwil Just before the business combination, Balam's Capital stock and retaining earnings were 140,000 and 224,000 respectively How much is the excess fair value over book valu acquired?
On January 1, 2014, Malibu Corporation paid $700,000 to purchase 90% of outstanding stock of Balam Corporation. Any excess fair value over the identifed assets and liabilities is atributed to goodwil Just before the business combination, Balam's Capital stock and retaining earnings were 140,000 and 224,000 respectively How much is the excess fair value over book valu acquired?
Chapter6: Corporations: Redemptions And Liquidations
Section: Chapter Questions
Problem 33CE
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Transcribed Image Text:On January 1, 2014, Malibu Corporation paid S700,000 to purchase 90% of outstanding stock of Balam Corporation. Any excess fair value over the idertifed assets and liabilities is
attributed to goodwil Just before the business combination, Balam's Capital stock and retaining earnings were 140,000 and 224.000 respectively
How much is the escess fair value over book valu acquired?
0413,776
O 500,000
O B50,000
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