Perch Co. acquired 80% of the common stock of Float Corp for $1,600,000. The fair value of

Question:

Perch Co. acquired 80% of the common stock of Float Corp for $1,600,000. The fair value of Float's net assets was $1,850,000, and the book value was $1,500,000. The non-controlling interest shares of Float Corp are not actively traded.

1) What is the total amount of goodwill recognized at the date of acquisition?

a) $150,000

b) $250,000

c) $0

d) $120,000

e) $170,000

2. What amount of goodwill should be attributed to the non-controlling interest at the date of acquisition?

a) $0

b) $20,000

c) $30,000

d) $100,000

e) $120,000

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... Common Stock
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