Skipen Corp

question 20

Essay

Skipen Corp. had the following stockholders' equity accounts:
The preferred stock was participating and is therefore considered to be equity. Vestin Corp. acquired 90% of this common stock for $2,250,000 and 70% of the preferred stock for $1,120,000. All of the subsidiary's assets and liabilities were determined to have fair values equal to their book values except for land which is undervalued by $130,000.
Required:
What amount was attributed to goodwill on the date of acquisition?

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Definitions:

Agreeableness

A personality trait characterized by compassion, cooperativeness, and a desire to maintain positive social relationships.

Big Five

is a model that outlines five broad dimensions of personality traits: openness, conscientiousness, extraversion, agreeableness, and neuroticism.

Hostility

Aggressive or antagonistic behavior or attitudes towards others.

Sibling Relationships

The bond and interactions between brothers and sisters, which can influence social development and emotional growth.