Question

Amie, Inc., has 100,000 shares of $2 par value stock outstanding. Prairie Corportaion acquired 30,000 of Amie's shares on January 1, 2012, for $120,000 when Amie's net assets had a total fair value of $350,000. On July 1, 2015, Prairie bought an additional 60,000 shares of Amie from a single stockholder for $6 per share. Although Amie's shares were selling in the $5 range around July 1, 2015. Prairie forecasted that obtaining control of Amie would produce significant revenue synergies to justify the premium price paid. If Amie's net identifiable asstets had a fair value of $500,000 at July 1, 2015, how much goodwill should Prairie report in its postcombination consolidated balance sheet?A. $60,000B. $90,000C. $100,000D. $-0-

Answer 1

How much balances a sheet was a 60,000B