Parco Pays $1 000 000 for All of Subco's Common

question 57

Multiple Choice

Parco pays $1 000 000 for all of Subco's common shares. Subco's net assets are carried on Subco's books for $900 000 and have a fair value of $950 000. What is Parco's goodwill on consolidation?

• A)$50 000
• B)$100 000
• C)Zero
• D)Cannot be determined from the information given.

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Definitions:

Counterfeiting

The illegal replication of products, currency, or documents with the intent to deceive or defraud by passing off the imitation as genuine.

Fake Versions

Non-genuine imitations of products, often of lower quality and illegally produced, intended to deceive consumers.

Dark Side

Aspects of something that are negative, harmful, or undesirable, often hidden or overlooked.

Consumer Behaviour

Delving into the processes by which individuals, groups, or businesses select, secure, utilize, and rid themselves of products, services, experiences, or ideas to cater to their needs, and assessing how these processes impact both the end users and the society at large.