Question: 7 . Specialized Inc. purchased 2 5 , 0 0 0 out of 3 0 , 0 0 0 outstanding shares of Stumpjumper Company for

7. Specialized Inc. purchased 25,000 out of 30,000 outstanding shares of Stumpjumper
Company for an average price of $70 per share when Stumpjumper Companys stock
was trading at $50 per share in the open market. Stumpjumper Companys net
identifiable assets are assessed at $1,800,000. How much goodwill should be
allocated to the controlling interest?

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