On November 30, 2016, Piani Incorporated purchased for cash of $25 per share all 400,000 shares of the outstanding common stock of Surge Company. Surge 's balance sheet at November 30, 2016, showed a book value of $8,000,000. Additionally, the fair value of Surge's property, plant, and equipment on November 30, 2016, was $1,200,000 in excess of its book value. 

What amount, if any, will be in the caption "Goodwill" in the November 30, 2016, consolidated of Piani Incorporated, and its wholly owned subsidiary, Surge Company?

Answer rating: 100% (QA)

To determine the amount of goodwill in the consolidated financial statements we need to first calcul... View the full answer