Jordan Company purchased 100 percent of the outstanding voting shares of Phil Corporation in the open market
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Jordan Company purchased 100 percent of the outstanding voting shares of Phil Corporation in the open market for $230,000 cash, and Phil was merged into Jordan Company. On the date of acquisition, the fair value of Phil Corporation’s property and equipment was $300,000 and the fair value of its long-term debt was $130,000. Phil has no other assets or liabilities. What amount of goodwill would Jordan Company record related to the purchase of Phil Corporation?
a. No goodwill should be recorded by Jordan.
b. $170,000
c. $60,000
d. $40,000
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Related Book For
Financial Accounting
ISBN: 9781264229734
11th Edition
Authors: Robert Libby, Patricia Libby, Frank Hodge
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