Perch Co Acquired 80% of the Common Stock of Float Corp

question 36

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 Perch at the date of acquisition?

• A) $150,000.
• B) $250,000.
• C) $0.
• D) $120,000.
• E) $170,000.

Understand how marketing research utilizes information technology.

Grasp the concept of independent and dependent variables in marketing experiments.

Comprehend the strategies for enhancing market research through various questioning formats.

Know the significance of demographic information in market segmentation.

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Definitions:

Butanoyl Chloride

A reactive acyl chloride compound with the chemical formula C4H7ClO, used in organic synthesis to introduce butanoyl functional groups.

Acylium Ion

A positively charged ion with the structure R-CO+, where R is an alkyl or aryl group, significant in various organic reactions.

Butanoyl Chloride

A four-carbon chain acyl chloride also known as butyryl chloride, used as an intermediate in chemical synthesis.

Reaction Reagents

Substances or compounds added to a system to cause a chemical reaction or are consumed in the reaction.