Quincy Corp

question 69

Multiple Choice

Quincy Corp., about to be liquidated, has the following amounts for its assets and liabilities:
The mortgage is secured by the land and building, and the note payable is secured by the equipment. Quincy expects that the expenses of administering the liquidation will total $40,000.
-Gongman Corp.owned the following assets when it came out of aChapter 11 bankruptcy: Gongman Corp.had a fresh start reorganization value of $1,000,000.What amount of goodwill should have been recognized in recording the reorganization?

• A) $ 20,000.
• B) $100,000.
• C) $ 60,000.
• D) $210,000.
• E) $ 98,000.

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