Reference no: EM131781700

Question - Perch Co. acquired 80% of the common stock of Float Corp. for $1,600,000. The fair value of Float's net assets was $1,850,000, and the book value was $1,500,000. The non-controlling interest shares of Float Corp. are not actively traded.

What is the total amount of goodwill recognized at the date of acquisition?

a) $150,000

b) $250,000

c) $0.00

d) $120,000

e) $170,000

What amount of goodwill should be attributed to the non-controlling interest at the date of acquisition?

a) $0.00

b) $20,000

c) $30,000

d) $100,000

e) $120,000

What is the dollar amount of non-controlling interest that should appear in a consolidated balance sheet prepared at the date of acquisition?

a) $350,000

b) $300,000

c) $400,000

d) $370,000

e) $0.00

What is the dollar amount of Float Corp's net assets that would be represented in a consolidated balance sheet prepared at the date of acquisition?

a) $1,600,000

b) $1,480,000

c) $1,200,000

d) $1,780,000

e) $1,850,000