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

question 52

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 the non-controlling interest at the date of acquisition?

• A) $0.
• B) $20,000.
• C) $30,000.
• D) $100,000.
• E) $120,000.

---

Definitions:

Assertive Community Treatment

A team-based treatment model designed to provide comprehensive, community-based psychiatric treatment, rehabilitation, and support to persons with serious and persistent mental illnesses.

SMI

Stands for Severe Mental Illness, a term that refers to psychiatric disorders that significantly impair daily functioning.

Clubhouse Model

A form of psychosocial rehabilitation for people with mental illness, providing a community of support as well as opportunities for work and socialization.

Stigma

A mark of disgrace associated with a particular circumstance, quality, or person, often leading to discrimination or prejudice.