ACME CoPaid $110,000 for the Net Assets of Comb Corp

question 12

Multiple Choice

ACME Co.paid $110,000 for the net assets of Comb Corp.At the time of the acquisition the following information was available related to Comb's balance sheet:
$$\begin{array} { l r r } & \text { Book Value } & \text { Fair Value } \\\text { Current Assets } & \$ 50,000 & \$ 50,000 \\\text { Building } & 80,000 & 100,000 \\\text { Equipment } & 40,000 & 50,000 \\\text { Liabilities } & 30,000 & 30,000\end{array}$$ What is the amount of goodwill or gain related to the acquisition??

• A)Goodwill of $70,000
• B)Goodwill of $30,000
• C)A gain of $30,000
• D)A gain of $70,000

---

Definitions:

Income Received

The amount of money or monetary value received by an individual or entity in exchange for goods provided, services rendered or as a return on investments.

Middle Three Quintiles

The segments of the population that fall into the second, third, and fourth quintiles when dividing the total population into five equal groups based on income or wealth.

Income Received

It refers to the total amount of money obtained by individuals or entities typically through employment, investments, or other sources.

Upper Quintiles

Refers to the top 20% of a population in terms of income or wealth distribution.