A Business Combination Results in $90,000 of Goodwill

question 89

Essay

A business combination results in $90,000 of goodwill. Several years later a worksheet is being produced to consolidate the two companies. Describe in words at what amount goodwill will be reported at this date.

Understand the impact of technological advances on small business operations and strategies.

Comprehend strategies for business downsizing and its effects on company structure and operations.

Identify resources available for small business advice and development.

Identify the key demographic segments relevant to market segmentation for small retailers and service providers.

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Definitions:

Significant Influence

The power to participate in the financial and operating policy decisions of another entity, without having control over those policies.

Investment Account

A type of account held at a financial institution that holds securities, cash, and other assets in the name of the investor.

Shares Sold

Refers to the number of shares of stock that have been bought and sold by investors over a given period, indicating trading activity and liquidity.

Dividends

Corporate profits shared with shareholders in the form of monetary disbursements.