On January 1, 2016, Rabb Corp

question 17

Multiple Choice

On January 1, 2016, Rabb Corp.purchased 80% of Sunny Corp.'s $10 par common stock for $975,000.On this date, the carrying amount of Sunny's net assets was $1,000,000.The fair values of Sunny's identifiable assets and liabilities were the same as their carrying amounts except for plant assets (net) , which were $100,000 in excess of the carrying amount. ​
In the January 1, 2016, consolidated balance sheet, goodwill should be reported at ____.

• A)​$0
• B)​$75,750
• C)​$95,000
• D)​$118,750

---

Definitions:

Gross Requirement

The total demand for an item or component before considering inventory on hand or scheduled receipts, typically used in production and inventory planning.

Bill Of Material

A complete rundown of essential substances, components, and procedures for constructing, crafting, or restoring a product or service.

Cumulative Lead Time

The total time required to manufacture a product, including the time to procure all necessary materials and components.