On April 31, 2019, Y acquired for $655000 cash in exchange of 70% of the outstanding common
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Question:
On April 31, 2019, Y acquired for $655000 cash in exchange of 70% of the outstanding common stocks of X when X's balance sheet showed net assets of $1000000 at the FMV. The business combination costs were $60000 indirect costs and $100000 direct costs.
What is the goodwill?
Expert Answer:
To calculate the goodwill in a business combination we need to compare the fair value of the conside... View the full answer
Related Book For 
Financial Reporting And Analysis
ISBN: 9781260247848
8th Edition
Authors: Lawrence Revsine, Daniel Collins, Bruce Johnson, Fred Mittelstaedt, Leonard Soffer
Posted Date:
