Dotel Company's 12\31\10 Statement of Financial Position Reports Assets of $6,000,000

question 76

Multiple Choice

Dotel Company's 12\31\10 statement of financial position reports assets of $6,000,000 and liabilities of $2,500,000.All of Dotel's assets' book values approximate their fair value, except for land, which has a fair value that is $400,000 greater than its book value.On 12\31\10, Egbert Corporation paid $6,100,000 to acquire Dotel.What amount of goodwill should Egbert record as a result of this purchase?

• A)$ -0-
• B)$ 100,000
• C)$2,200,000
• D)$2,600,000

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Definitions:

Economic Activity

The actions that involve the production, distribution, and consumption of goods and services within an economy.

Aggregate Demand

The comprehensive economic demand for all goods and services, marked at a particular price level over a certain period.

Money Supply

The total amount of money available in an economy at a specific time, including cash, coins, and balances held in bank accounts.

Retirement

The act of leaving one's job or ceasing to work after reaching a certain age or due to health issues, often accompanied by receiving a pension or other retirement benefits.