On January 1,20X8,Parsley Corporation Acquired 75 Percent of Sage Company's

question 5

Multiple Choice

On January 1,20X8,Parsley Corporation acquired 75 percent of Sage Company's voting common stock for $90,000 cash.At that date,the fair value of the noncontrolling interest was $30,000.Sage's balance sheet at the date of acquisition contained the following balances:
At the date of acquisition,the reported book values of Sage's assets and liabilities approximated fair value.Consolidating entries are being made to prepare a consolidated balance sheet immediately following the business combination.
-Based on the preceding information,the amount of goodwill reported is:

• A)$0.
• B)$10,000.
• C)$15,000.
• D)$20,000.

---

Definitions:

Decision-making Process

A series of steps that individuals or groups follow to evaluate options and choose from among alternatives for actions or resolutions.

Organizational Objectives

The specific, measurable goals that a company aims to achieve in order to fulfill its mission and drive its vision forward.

Overall Goals

General objectives that an organization or individual aims to achieve in the long term.