The Fair Market Value of the Fixed Assets of Markco

question 306

Multiple Choice

The fair market value of the fixed assets of Markco, Inc. is $8,500.
Big-T paid $13,000 for Markco, Inc. with funds from a long-term debt offering. The purchase method of accounting is used.
What is the amount of goodwill on the books of Big-T as a result of the merger?

• A) $2,000
• B) $4,500
• C) $5,000
• D) $7,000
• E) $9,000

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DMM

Digital Multimeter, a testing tool used to measure electrical values such as voltage, current, and resistance.

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Main Circuit Board

The main circuit board, often called a motherboard, is the primary printed circuit board (PCB) in computers and other electronic devices, hosting the central processing unit and providing connectors for other peripherals.

Computer

Any of a number of different types of electronic processing devices with a CPU, input circuit, data retention, and output switching.