What Amount of Goodwill Should Be Attributed to Perch According

question 9

Multiple Choice

What amount of goodwill should be attributed to Perch according to the acquisition method per SFAS 141(R) ?

• A)$150,000
• B)$250,000
• C)$0
• D)$120,000
• E)$170,000

---

Definitions:

Depreciation Expense

The allocated portion of the cost of a fixed asset to expense over the asset's useful life to represent its use and wear and tear over time.

Interest Expense

The financial charge an organization incurs from taking out loans.

Tax Rate

The percentage of an individual's or corporation's income or profits that is paid to the government as tax.

Cash Flow

The net amount of cash and cash equivalents being transferred into and out of a business.