Which statements regarding y goodwill on the date

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Problem 1: The X Company acquires the Y Company's common shares for cash. On the date of acquisition, Y had Goodwill of $100,000 on its books. Which of the following statements regarding Y's Goodwill on the date of acquisition is correct?

a. Y's goodwill is considered an identifiable asset and should therefore be included in Parent Company's Purchas Price Discrepancy calculation.

b. Y's goodwill is considered an identifiable asset and should therefore be excluded from the Parent Company's Purchase Price Discrepancy calculation.

c. Y's goodwill is not considered an identifiable asset and should therefore be excluded from Parent Company's Purchase Price Discrepancy calculation.

d. Y's goodwill is not considered an identifiable asset and should therefore be included in Parent Company's Purchase Price Discrepancy calculation.

Reference no: EM132691160

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