Ivy,Incorporated,purchased All the Common Stock of Harrell Company for $2,000,000

question 13

Multiple Choice

Ivy,Incorporated,purchased all the common stock of Harrell Company for $2,000,000.Harrell's net assets had a book value of $1,200,000 and a fair market value of $1,500,000.What amount of goodwill should Ivy record as a result of this transaction?

• A)$0
• B)$300,000
• C)$500,000
• D)$700,000

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Definitions:

Job

Employment, typically a role performed by an individual in exchange for payment.

Money

A medium of exchange used to facilitate the sale, purchase, or trade of goods and services, acting as a unit of account, a store of value, and sometimes, a standard of deferred payment.

Career Interest

Personal preferences or inclinations towards specific professions or occupational areas.

Mechanic

A professional who specializes in repairing and maintaining machinery, particularly automobiles.