Solution-What amount will be recorded as Goodwill

What amount will be recorded as Goodwill

Reference no: EM132705994

Question - Pug purchased Shelly by issuing common stock valued at $400,000. The book value and fair value of Shelly at the time of acquisition was:

	Book Value	Fair Value
Cash	$30,000	$30,000
Accounts Receivable	50,000	50,000
Inventory	60,000	70,000
Equipment (net)	80,000	60,000
Building (net)	200,000	250,000
Accounts Payable	100,000	100,000
Common Stock	100,000
Retained Earnings	220,000

Required - If Pug acquires 90% of Shelly, what amount will be recorded as Goodwill?

a. $40,000

b. $720,000

c. $76,000

d. $112,000

Reference no: EM132705994

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What amount will be recorded as Goodwill

Reference no: EM132705994

Reference no: EM132705994

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