Plummet Corporation Reported the Book Value of Its Net Assets

question 38

Multiple Choice

Plummet Corporation reported the book value of its net assets at $400,000 when Zenith Corporation acquired 100 percent ownership.The fair value of Plummet's net assets was determined to be $510,000 on that date.
-Based on the preceding information,what amount of goodwill will be reported in consolidated financial statements presented immediately following the combination if Zenith paid $550,000 for the acquisition?

• A)$0
• B)$50,000
• C)$150,000
• D)$40,000

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