Perch Co Acquired 80% of the Common Stock of Float Corp

question 36

Multiple Choice

Perch Co. acquired 80% of the common stock of Float Corp. for $1,600,000. The fair value of Float's net assets was $1,850,000, and the book value was $1,500,000. The non-controlling interest shares of Float Corp. are not actively traded.
What amount of goodwill should be attributed to Perch at the date of acquisition?

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

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Definitions:

Anti-gay Attitudes

Prejudices or negative beliefs held against individuals because of their sexual orientation, specifically against those who identify as gay.

Homosexual

Referring to an individual who is romantically or sexually attracted to members of the same sex.

Romantic Advances

Actions or gestures aimed at signaling interest in forming a romantic relationship with someone.

Contagious Stigma

A phenomenon where a stigma attached to an individual spreads to and negatively affects others closely associated with them.