Plummet Corporation Reported the Book Value of Its Net Assets

question 3

Multiple Choice

Plummet Corporation reported the book value of its net assets at $400,000 when Zenith Corporation acquired 100 percent ownership.The fair value of Plummet's net assets was determined to be $510,000 on that date.
-Based on the preceding information,what amount of goodwill will be reported in consolidated financial statements presented immediately following the combination if Zenith paid $500,000 for the acquisition?

• A)$0
• B)$50,000
• C)$150,000
• D)$40,000

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Definitions:

Genes

Units of heredity made up of DNA that carry information for the development, functioning, and reproduction of organisms.

Meiosis

A type of cell division that reduces the chromosome number by half, resulting in four haploid cells, each genetically distinct from the parent cell, involved in sexual reproduction.

Sperm Cell

The male reproductive cell, which can fertilize an egg cell to initiate the development of a new organism.

Genetic Material

Molecules within living cells that carry genetic information, primarily DNA or RNA, which guide the development, functioning, and reproduction of organisms.