Perch Co. acquired 80% of the common stock of Float Corp. for $1,600,000. The fair value of Float's net assets was $1,850,000, a

Question

3 years ago

14

Perch Co. acquired 80% of the common stock of Float Corp. for $1,600,000. The fair value of Float's net assets was $1,850,000, a

nd the book value was $1,500,000. The noncontrolling interest shares of Float Corp. are not actively traded. What amount of goodwill should be attributed to Perch at the date of acquisition?

Business

1 answer:

Mama L [17] · Answer 1 · 2021-12-31T16:24:55+03:00

Mama L [17]3 years ago

4 0

Answer: $120,000

Explanation:

Purchase Price for 80%) $1,600,000 - (FV $1,850,000 × .80 = $1,480,000) = $120,000