The Balance Sheet of Mini Company Was as Follows Immediately

question 41

Multiple Choice

The balance sheet of Mini Company was as follows immediately before it was acquired b Maxi Company: On January 1, 2010, Maxi Company paid $350,000 in cash for 100% of the outstanding common stock of Mini Company. The current market value of Mini Company's plant and equipment was $140,000 on the date of acquisition. If the market value and book value ar the same for Mini's remaining assets, what was the amount of goodwill purchased by Max Company?

• A) $20,000
• B) $40,000
• C) $60,000
• D) $50,000

---

Definitions:

New-to-the-world Products

Innovations that create an entirely new market by offering a product or service that has never been available before.

Completely New Market

An entirely untapped or recently created market space that has not been served by existing products or services.

Early Adopters

Individuals or businesses who use or adopt new products, services, or technologies early in their life cycle, often influencing others in their purchasing decisions.

Opinion Leaders

Influential members of a community or group whose advice or example significantly influences others' attitudes or behaviors.