Nelson's Interiors Has $1

question 83

Multiple Choice

Nelson's Interiors has $1.52 million in net working capital.The firm has fixed assets with a book value of $23.23 million and a market value of $26.16 million.The firm has no long-term debt.The Home Centre is buying Nelson's Interiors for $29.5 million in cash.The acquisition will be recorded using the purchase accounting method.What is the amount of goodwill that The Home Centre will record on its balance sheet as a result of this acquisition?

• A)$1.82 million
• B)$3.34 million
• C)$3.88 million
• D)$4.14 million
• E)$6.27 million

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