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On January 1,20X5,Seaside Company Acquires 90 Percent Ownership in Rainbow

question 17

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On January 1,20X5,Seaside Company acquires 90 percent ownership in Rainbow Corporation for $180,000.The fair value of the noncontrolling interest at that time is determined to be $20,000.Rainbow reports net assets with a book value of $160,000 and fair value of $175,000.Seaside Company reports net assets with a book value of $480,000 and a fair value of $525,000 at that time,excluding its investment in Rainbow.What will be the amount of goodwill that would be reported immediately after the combination?


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