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:

Income Distribution

The distribution of total earnings among individuals within a society.

More Equal

A phrase describing a reduction in disparities or inequalities, typically in contexts related to income, wealth, or opportunities.

Wealth Distribution

The manner in which wealth is distributed among the individuals in a society.

Income Inequality

Income inequality describes the extent to which income is distributed unevenly among a population.