Suppose Congress is considering raising the top federal marginal tax rate from 35% to 40%. Senator Jones believes the elasticity
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Answer:
total amount of goodwill recognized at the date of acquisition is 650000
Explanation:
given data
ownership = 80%
common stock = $1,200,000
net assets = $850,000
book value = $600,000
to find out
total amount of goodwill recognized at the date of acquisition
solution
we know here goodwill of controlling interest is
goodwill of controlling interest = common stock - ( net asset × ownership )
put here value
goodwill of controlling interest = 1,200,000 - ( 850,000 × 80% )
goodwill of controlling interest = 520000
and total amount of goodwill recognized at the date of acquisition
will be
total amount =
total amount = = 650000
so total amount of goodwill recognized at the date of acquisition is 650000