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What would be the cost of an acquisition

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Reference no: EM132933855

Question - What would be the cost of an acquisition if we obtain a 'negative' goodwill or bargain gain of 600?. We must assume that subsidiary's owner's equity is 4,000, there's an asset with a fair value 4,000 higher than its book value and the tax rate is 50%. There are no non-controlling interests.

A) 5,400

B) 3,200

C) 6,600

D) None of the other answers are correct

Reference no: EM132933855

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