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What is the goodwill for acquisition

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Question: Lowell Company acquired 90 percent of Boston Company's 100,000 outstanding shares on January 1, 2019, for $234,000 cash. Boston's share was actively traded at $2.50 per share on the market, which is deemed as the NCI's fair value per share.

Boston's stockholders' equity consisted of common stock of $120,000 and retained earnings of $80,000. An analysis of Boston's net assets revealed the following: Book Value Fair Value Buildings (10-year life) $ 10,000 $ 8,000 Equipment (4-year life) 14,000 18,000 Land 5,000 12,000 Any excess consideration transferred over fair value is attributable to Goodwill.

On 12/31/2020, Boston reports net income of $40,000 and paid dividends of $10,000. What is the goodwill for this acquisition on 1/1/2019? What is the goodwill attributable to NCI for this acquisition on 1/1/2019?

Reference no: EM132980687

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