The Financial Statements for Goodwin, Inc

question 101

Multiple Choice

The financial statements for Goodwin, Inc., and Corr Company for the year ended December 31, 20X1, prior to Goodwin's acquisition 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 acquire 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.
Compute the goodwill arising from this acquisition at December 31, 20X1.

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

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Definitions:

Connective Tissues

A group of tissues in the body that maintain the form of the body and its organs and provide cohesion and internal support.

Stratified Columnar

Stratified columnar epithelium is a type of tissue composed of multiple layers of columnar cells, designed to protect or secrete substances in certain areas of the body.

Widespread Epithelium

A term not specifically recognized in medical terminology but suggests epithelial tissue that covers a large or broad area.

Rare

Uncommon or infrequent in occurrence; something that is not found in a high frequency or quantity.