Snowflake Corp

question 24

Multiple Choice

Snowflake Corp. Penguin,Inc.acquires 100% of the outstanding shares of Snowflake Corp.for $2,250,000 and accounts for the transaction using the purchase method.Snowflake's balance sheet at the acquisition date is as follows:
Based on the information concerning Snowflake Corp.what is the value of the goodwill related to the acquisition?

• A) $1,775,000
• B) $475,000
• C) $2,250,000
• D) $1,325,000

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Definitions:

Consumer Attention

The focus or concentration that consumers give to marketing messages, products, or brands.

Comparative

Involving the assessment or measurement of similarities and differences between two or more items, often used in research and analysis.

Competitive Rates

Pricing that is designed to be competitive with the market or industry standard, often to attract customers or business.

Progressive Ad

A form of advertising that aims to move consumers through a sequence of messages over time, gradually building up a more complex message or brand identity.