The DOC Corporation with a Book Value of $20 Million

question 73

Multiple Choice

The DOC Corporation with a book value of $20 million and a market value of $30 million has acquired the CIC Corporation with a book value of $6 million and a market value of $8 million at a price of $9 million. If the transaction is a purchase, will there be any goodwill, and if so, what is the amount of goodwill?

• A)No goodwill; 0
• B)Yes, goodwill; 3
• C)Yes, goodwill; 1
• D)Goodwill cannot be calculated with the information given.

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Definitions:

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Lifetime Learning Credit

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