The Financial Statements for Goodwin, Inc

question 59

Multiple Choice

The financial statements for Goodwin, Inc. and Corr Company for the year ended December 31, 2013, prior to Goodwin's acquisition business combination transaction regarding Corr, follow (in thousands) : On December 31, 2013, 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, 2013.

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

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Definitions:

CEO

Chief Executive Officer; the highest-ranking person in a company or organization, responsible for making overarching decisions.

Naming a Successor

The process of identifying and appointing an individual to take over a role or position after the current holder leaves or retires.

Key Executive

A high-ranking individual in a company who has significant responsibility for managing an essential part of the business.

Operating Performance

An analysis of a company's efficiency and effectiveness in managing its resources and operations, often assessed through metrics like return on investment, profit margins, and productivity levels.