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How much would be reported as goodwill

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Question - Company P acquires 100% of Company S for $130,000 cash. The book value of Company S's total equity (net assets) at the time was $110,000. Assuming that the market value of S's fixed assets exceeded book value by $20,000 and $5,000 of (previously unrecognized) identifiable intangible assets were included as part of the purchase, how much would be reported as goodwill on the initial consolidated balance sheet?

A. -$5,000

B. $10,000

C. $20,000

D. $0

E. $5,000

Reference no: EM132929918

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