On April 1, 20X8, Plum Inc. paid $1,700,000 for all of Long Corp.s issued and outstanding common

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On April 1, 20X8, Plum Inc. paid $1,700,000 for all of Long Corp.’s issued and outstanding common stock. On that date, the costs and fair values of Long’s recorded assets and liabilities were as follows:

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In Plum’s March 31, 20X9, consolidated balance sheet, what amount of goodwill should be reported as a result of this business combination?

a. $360,000.

b. $396,000.

c. $400,000.

d. $440,000

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Related Book For answer-question

Advanced Financial Accounting

ISBN: 9781260165111

12th Edition

Authors: Theodore Christensen, David Cottrell, Cassy Budd

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Question Posted: Mar 13, 2024 07:00 AM

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On April 1, 20X8, Plum Inc. paid $1,700,000 for all of Long Corp.s issued and outstanding common

Question:

Cost Fair Value Cash $ 160,000 $ 160,000 Inventory 480,000 160,000 Property, plant & equipment (net) 900,000 1,040,000 Liabilities (360,000) (360,000) Net assets $1,250,000 $1,300,000

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Advanced Financial Accounting

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