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The balance sheet of Cattleman's Steakhouse shows assets of $98,400 and liabilities of $25,000. The fair value of the assets is $105,000 and the fair value of its liabilities is $25,000. Longhorn paid Cattleman's $125,000 to acquire all of its assets and liabilities. Longhorn should record goodwill on this purchase of: Mutiple Choice: A) $28,600. B) $20,000. C) $45,000.   D) $73,600

The balance sheet of Cattleman's Steakhouse shows assets of $98,400 and liabilities of $25,000. The fair value of the assets is $105,000 and the fair value of its liabilities is $25,000. Longhorn paid Cattleman's $125,000 to acquire all of its assets and liabilities. Longhorn should record goodwill on this purchase of: Mutiple Choice: A) $28,600. B) $20,000. C) $45,000.   D) $73,600

Principles of Accounting Volume 1
Principles of Accounting Volume 1
19th Edition
ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax
Chapter11: Long-term Assets
Section: Chapter Questions
Problem 12PB: Farm Fresh Agriculture Company purchased Sunny Side Egg Distribution for $400,000 cash when Sunny...
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The balance sheet of Cattleman's Steakhouse shows assets of $98,400 and liabilities of $25,000. The fair value of the assets is $105,000 and the fair value of its liabilities is $25,000. Longhorn paid Cattleman's $125,000 to acquire all of its assets and liabilities. Longhorn should record goodwill on this purchase of:

Mutiple Choice:

A) $28,600.

B) $20,000.

C) $45,000.
 
D) $73,600.
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