On January 1, 2011, Bast Co

question 97

Essay

On January 1, 2011, Bast Co. had a net book value of $2,100,000 as follows:

Fisher Co. acquired all of the outstanding preferred shares for $148,000 and 60% of the common stock for $1,281,000. Fisher believed that one of Bast's buildings, with a twelve-year life, was undervalued on the company's financial records by $70,000.
Required:
What is the amount of goodwill to be recognized from this purchase?

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Definitions:

Sexual Theorist

An expert or scholar who studies and formulates theories regarding sexuality, sexual behaviors, and related topics.

Experimental Research

The systematic manipulation of an individual or the environment to learn the effect of such manipulation on behavior.

Correlational Studies

Research methods that examine the relationship between two or more variables, without inferring a causal relationship.

Alfred Kinsey

A pioneering American biologist, professor, and sexologist who, in the mid-20th century, conducted and published groundbreaking research on human sexual behavior.