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Aspen Corporation purchased 50,000 shares of Whistler Corporation on August 1, 2016 for $500,000. Whistler has 200,000 shares outstanding with $1 par value. On May 1, 2018, Aspen purchased additional...

Aspen Corporation purchased 50,000 shares of Whistler Corporation on August 1, 2016 for $500,000. Whistler has 200,000 shares outstanding with $1 par value. On May 1, 2018, Aspen purchased additional 100,000 shares for $1,500,000. On May 1, 2018, Whistler’s identifiable net assets had a fair value of $2,500,000. On May 1, 2018 Aspen should record goodwill in the amount of:

0

$150,000

$500,000

$2,250,000

$2,500,000
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Answer #1

Answer :- $500,000

Share Purchased Purchase Consideration $50,000 $100,000 $150,000 August 1,2016 May 12018 Total 500,000 1,500,000 2,000,000 50

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Aspen Corporation purchased 50,000 shares of Whistler Corporation on August 1, 2016 for $500,000. Whistler has 200,000 shares outstanding with $1 par value. On May 1, 2018, Aspen purchased additional...
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