Dodd Co Acquired 75% of the Common Stock of Wallace Corp

question 96

Multiple Choice

Dodd Co. acquired 75% of the common stock of Wallace Corp. for $1,800,000. The fair value of Wallace's net assets was $2,100,000, and the book value was $1,900,000. The noncontrolling interest shares of Wallace Corp. are not actively traded.What amount of goodwill should be attributed to Dodd at the date of acquisition?

• A) $0.
• B) $75,000.
• C) $150,000.
• D) $225,000.
• E) $300,000.

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Definitions:

Achievement-Motivation

is a personal drive to overcome challenges, master tasks, and reach high standards of excellence, influenced by an individual's desire for success and fear of failure.

Driven

Being highly motivated or determined to achieve specific goals, often displaying a strong sense of purpose.

Compressed Workweek

A flexible work arrangement where a standard workweek is condensed into fewer days, typically allowing employees to have longer weekends.

Job Simplification

The process of breaking down jobs into their simplest components to increase productivity and efficiency.