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.

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Definitions:

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The statistical measure of the number of births per 1,000 people in the United States over a specified period of time.

15- To 16-Year-Old Girls

Adolescent females in the age range of fifteen to sixteen, often experiencing significant physical, emotional, and cognitive development.

Decline

A decrease or deterioration in condition, quality, or level, often observed over time and in various contexts, including health, economic performance, and environmental conditions.

Early Sexual Activity

Engagement in sexual behaviors at a younger-than-average age, which can have various social and health implications.