REFERENCE: Ref.02_03 the Financial Statements for Goodwin,Inc. ,And Corr Company for the for the Year

question 75

Multiple Choice

REFERENCE: Ref.02_03
The financial statements for Goodwin,Inc. ,and Corr Company for the year ended December 31,20X1,prior to Goodwin's business combination transaction regarding Corr,follow (in thousands) : On December 31,20X1,Goodwin issued $600 in debt and 30 shares of its $10 par value common stock to the owners of Corr to purchase all of the outstanding shares of that company.Goodwin shares had a fair value of $40 per share.
Goodwin paid $25 to a broker for arranging the transaction.Goodwin paid $35 in stock issuance costs.Corr's equipment was actually worth $1,400 but its buildings were only valued at $560.
-Assuming the combination is accounted for as a purchase,compute the consolidated goodwill account at December 31,20X1.

• A)$0.
• B)$100.
• C)$125.
• D)$160.
• E)$45.

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Definitions:

Solomon Asch

A psychologist best known for his experiments in the 1950s on conformity, demonstrating the influence of group pressure on opinions.

Normative Social Influence

The influence of other people that leads us to conform in order to be liked and accepted by them.

Social Approval

The positive recognition, acceptance, or endorsement by others in a social context.

Clarify Reality

The process of making situations, expectations, or concepts more understandable and clear, often used in counseling or educational settings.