On January 1, 2013, Lester Company Purchased 70% of Stork

question 33

Multiple Choice

On January 1, 2013, Lester Company purchased 70% of Stork Corporation's $5 par common stock for $600,000.The book value of Stork net assets was $640,000 at that time.The fair value of Stork's identifiable net assets were the same as their book value except for equipment that was $40,000 in excess of the book value.In the January 1, 2013, consolidated balance sheet, goodwill would be reported at

• A)$152,000.
• B)$177,143.
• C)$80,000.
• D)$0.

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Definitions:

Cooing

The early vocalization of infants, consisting of soft, murmuring sounds, particularly when content or as an early form of communication.

Holophrase

A single word that is used to express a complete, meaningful thought.

Whole Thought

A complete or comprehensive thought that encapsulates a fully formed idea or concept.

Object Permanence

The understanding that objects continue to exist even when they cannot be observed (seen, heard, touched, smelled, or sensed in any way).