Question: 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

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 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

Property, net.. 4,000,000 Equity. $4,100,000 Total 1,100,000 $4,100,000

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