Use the Following Information to Answer the Question(s)below

question 26

Multiple Choice

Use the following information to answer the question(s) below.
On January 1,2011,Pardy Corporation acquired a 70% interest in the common stock of Salter Corporation for $7,000,000 when Salter's stockholders' equity was as follows:
There were no preferred dividends in arrears on January 1,2011.There are no book value/fair value differentials.
-What is the implied goodwill for Salter based on Pardy's purchase price for Salter on January 1,2011?

• A)$ 0
• B)$ 35,000
• C)$ 70,000
• D)$100,000

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Definitions:

Social Psychologist

A specialist who studies how individuals' thoughts, feelings, and behaviors are influenced by the actual, imagined, or implied presence of others.

Personality

The combination of characteristics or qualities that form an individual's distinctive character and behavioral patterns.

Physiological Psychology

A branch of psychology that studies the relationship between physiological processes and behaviors.

Genetic Factors

Components of an organism's DNA that contribute to its physical development, behavior, and predispositions.