Parent acquires a 60% interst in a target company for $ 1,500.   The tangible assets of the target are valued at $1,600 and tangible liabilities of the target are valued at $400.  Assume the noncontrolling interest is valued on a per share basis at the same value as the parent's controlling interest.  What is the amount of the goodwill from the acquisition?     $300     $1,300     $1,000     zero

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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Question 31

Parent acquires a 60% interst in a target company for $ 1,500.   The tangible assets of the target are valued at $1,600 and tangible liabilities of the target are valued at $400.  Assume the noncontrolling interest is valued on a per share basis at the same value as the parent's controlling interest.  What is the amount of the goodwill from the acquisition?

   

$300

   

$1,300

   

$1,000

   

zero

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