Fizzy Cola acquires Juicee Ltd for $25,000,000, and accounts for its investment as a statutory merger Juicee 's balance sheet at the date of acquisition is as follows The fair value of Juicee 's current assets is $75,000 less than book value The fair value of its property is $1,500,000 less than bo...

Fizzy Cola acquires Juicee Ltd. for $25,000,000, and accounts for its investment as a statutory merger. Juicee's

Question:

Fizzy Cola acquires Juicee Ltd. for $25,000,000, and accounts for its investment as a statutory merger. Juicee's at the date of acquisition is as follows

The fair value of Juicee's current assets is $75,000 less than book value. The fair value of its property is $1,500,000 less than book value. The book value of its liabilities approximates fair value. How much goodwill does Fizzy report for this acquisition?
a. $19,475,000
b. $22,325,000
c. $22,475,000
d. $25,475,000

Goodwill
Goodwill is an important concept and terminology in accounting which means good reputation. The word goodwill is used at various places in accounting but it is recognized only at the time of a business combination. There are generally two types of... Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...