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.

---

Definitions:

Corporate Altruism

The practice of businesses voluntarily engaging in philanthropic activities and making decisions that benefit society as a whole, beyond what is required for profit maximization.

Cause Marketing

A type of corporate social responsibility, in which a company's promotional campaign has the dual purpose of increasing profitability while bettering society.

Avon Breast Cancer Crusade

A program initiated by Avon Products, Inc. to raise awareness and funds for breast cancer research and access to care.

Philanthropic Marketing

Marketing efforts that involve charitable activities or donations to support social causes.