Following Its Acquisition of the Net Assets of Burnt Company

question 27

Multiple Choice

Following its acquisition of the net assets of Burnt Company, PrimroseCompany assigned goodwill of $60,000 to one of the reporting divisions.Information for this division follows: $\begin{array}{lrr}&\text { Carrying Amount } & \text { Fair Value } \\\text { Cash } & \$ 20,000 & \$ 20,000 \\\text { Inventory } & 35,000 & 40,000 \\\text { Equipment } & 125,000 & 160,000 \\\text { Goodwill } & 60,000 & \\\text { Accounts Payable } & 30,000 & 30,000\end{array}$ Based on the preceding information, what amount of goodwill will be reported for this division if its fair value is determined to be $200,000?

• A)$0
• B)$60,000
• C)$30,000
• D)$10,000

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Definitions:

Unanimous Vote

A voting result where all participants agree on the decision or option presented without any dissent.

Shareholder Proxies

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