Sunny Co Purchased 80% of Reuben Ltd

question 15

Multiple Choice

Sunny Co. purchased 80% of Reuben Ltd. for $1,200,000. At the date of acquisition, the carrying value of Reuben's net identifiable assets was $1,000,000, and the fair value was $1,300,000. What is the amount of the goodwill under the entity method?

• A)$0
• B)$200,000
• C)$240,000
• D)$300,000

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Definitions:

Liberalism

An approach towards politics and ethics that advocates for individual liberty, the agreement of the governed, and uniformity in legal standards.

European Enlightenment

An intellectual movement in 17th and 18th centuries emphasizing reason and individualism rather than tradition; heavily influencing the development of Western philosophy, political thought, and society.

Deism

Enlightenment thought applied to religion; emphasized reason, morality, and natural law.

Junípero Serra

An 18th-century Franciscan friar known for founding several missions in what is now California, contributing to the Spanish colonization of the region.