Perch Co Acquired 80% of the Common Stock of Float Corp

question 52

Multiple Choice

Perch Co. acquired 80% of the common stock of Float Corp. for $1,600,000. The fair value of Float's net assets was $1,850,000, and the book value was $1,500,000. The non-controlling interest shares of Float Corp. are not actively traded.
What amount of goodwill should be attributed to the non-controlling interest at the date of acquisition?

• A) $0.
• B) $20,000.
• C) $30,000.
• D) $100,000.
• E) $120,000.

Determine inventory turnover.

Analyze total asset turnover and its impact on company performance.

Calculate and interpret price-earnings ratios.

Understand the calculation and significance of return on equity (ROE).

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Definitions:

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A field of economics that examines how psychological, cognitive, emotional, cultural, and social factors affect economic decisions of individuals and institutions.

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Horizontal Differentiation

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