Reference no: EM133067421

Question - On December 31, 20X1, Par Inc and Sub Corp reported current assets of $67, 189 and $11,203 respectively on their balance sheets. Immediately following the reporting, Par Inc purchased all of Sub Corp's Common Shares on January 1, 20X2, for $44,798 in cash. On the acquisition date, Sub's current assets had a fair value of $29,108. The fair value of the remaining identifiable net assets was $12,317. The Common Shares accounts of Par and Sub were $88,929 and $12, 131, respectively, immediately before the acquisition. The Retained Earnings accounts of Par and Sub were $8,958 and $10,983, respectively, immediately before the acquisition. (There were no other equity accounts.) What should be the amount of goodwill arising from Par's acquisition of Sub?