On April 1, 2010, Parrish Company Purchased 90% of the Outstanding

question 38

Essay

On April 1, 2010, Parrish Company purchased 90% of the outstanding voting common stock of Hamilton Corporation for $400,000. At that date the fair market value of Hamilton's assets less liabilities was $200,000. What amount, if any, of goodwill must Parrish recognize in its consolidated balance sheet on December 31, 2010? Show your work.

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Definitions:

Alternative Partners

Different partners or counterparts considered in a business, negotiation, or relationship scenario.

Game Theory Matrix

A table used in game theory that shows the payoffs for each player for every possible combination of actions.

Collusion

An agreement, usually secretive, between two or more parties to limit competition and manipulate market conditions in their favor.

Outcome

The result or effect of an action, situation, or event, typically one that is important or considered significant.