Amie inc has 100000 shares of 2 par value stock outstanding

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Amie, Inc., has 100,000 shares of $2 par value stock outstanding. Prairie Corporation acquired 30,000 of Amie's shares on January 1, 2010, for $120,000 when Amie's net assets had a total fair value of $350,000. On July 1, 2013, Prairie agreed to buy an additional 60,000 shares of Amie from a single stockholder for $6 per share. Although Amie's shares were selling in the $5 range around July 1, 2013, Prairie forecasted that obtaining control of Amie would produce significant revenue synergies to justify the premium price paid. If Amie's net identifiable assets had a fair value of $500,000 at July 1, 2013, how much goodwill should Prairie report in its postcombination consolidated balance sheet?

Reference no: EM13602256

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