Apple Inc Purchased a 70% Interest in the Banana Company for for $490,000

question 34

Multiple Choice

Apple Inc. purchased a 70% interest in the Banana Company for $490,000 on January 1, 20X3, when Banana Company had the following stockholders' equity: At the time of Apple's purchase, Banana Company was an 80% owner of the Carrot Company. Also on that date, Carrot Company has a machine that has a market value in excess of book value of $20,000. There is no difference between book and market value for any Banana Company assets. The goodwill that would result from this purchase is ____.

• A)$184,000
• B)$180,000
• C)$140,000
• D)$126,000

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Definitions:

Lymphatic Fluid

A clear, watery fluid that travels through the lymphatic system, carrying cells that help fight infection and disease.

Male Urethra

The tube that conveys urine from the bladder to the outside of the male body and also serves as a passage for semen during ejaculation.

Primary Spermatocyte

A diploid cell in the testes that undergoes the first division of meiosis to produce two secondary spermatocytes.

Meiotic Division

A type of cell division that reduces the chromosome number by half, resulting in the production of gametes or spores.