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QUESTION 5 Wilder Company purchased the net assets of Stocks Company for $225,000. On the date of Wilders purchase, Stocks C
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The difference between the fair value of net assets acquired and consideration paid is actually treated as purchased goodwill in the balance sheet or statement of financial position. since there is no option for goodwill treatment; the answer should be

A. the $45000 difference should be credited to retained earnings.

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