On January 1,20X9,Pirate Corporation Acquired 80 Percent of Sea-Gull Company's

question 34

Multiple Choice

On January 1,20X9,Pirate Corporation acquired 80 percent of Sea-Gull Company's common stock for $160,000 cash.The fair value of the noncontrolling interest at that date was determined to be $40,000.Data from the balance sheets of the two companies included the following amounts as of the date of acquisition:
At the date of the business combination,the book values of Sea-Gull's net assets and liabilities approximated fair value except for inventory,which had a fair value of $45,000,and land,which had a fair value of $60,000.
-Based on the preceding information,what amount of goodwill will be reported in the consolidated balance sheet prepared immediately after the business combination?

• A)$0
• B)$40,000
• C)$20,000
• D)$15,000

---

Definitions:

Sharing Videos

The act of distributing video content to others through various platforms or channels, often for informational, entertainment, or social purposes.

Social Network

A website or platform that allows users to produce and share their own content or engage in social networking activities.

Engagement Rate

A metric used to measure the level of interaction and involvement an audience has with content, often used in digital marketing to gauge the effectiveness of campaigns or posts.

Customer Actions

The steps or behaviors taken by consumers in response to marketing efforts, which can include purchasing, sharing feedback, or engaging with a brand.