Advanced Accounting 14th Edition
14th Edition
ISBN: 9781260726442
Author: By Joe Ben Hoyle And Thomas Schaefer And Timothy Doupnik
Publisher: Mc Grawhill Education
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Question
Chapter 4, Problem 2P
To determine
Identify the appropriate answer for the given statement from the given choices.
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Company X acquires 100 percent of the voting shares of Company Y for $275,000 on December 31, 2008. The fair value of the net assets of Company X at the date of acquisition was $300,000. This is an example of a(n):
Select one:
a. extraordinary loss
b. revaluation adjustment
c. bargain purchase
d. positive differential
1.Sterne acquired 60% of the voting equity shares of Defoe. Defoe had the following equity at the date of acquisition:
$
Ordinary shares $1 500,000
Retained earnings 250,000
The cost of the investment was $850,000 and the fair value of the non-controlling interest at acquisition was $120,000.
What was the goodwill on acquisition of Defoe?
a.
$100,000
b.
$132,000
c.
$520,000
d.
$220,000
Chapter 4 Solutions
Advanced Accounting 14th Edition
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