On January 1, Morgan Company has a net book value of $1,460,000 as follows:
1,000 shares of preferred stock; par value $100 per share; cumulative, | |
nonparticipating, nonvoting; call value $108 per share | $ 100,000 |
20,000 shares pf common stock; par value $40 per share | 800,000 |
Retained earnings | 560,000 |
Total | $1,460,000 |
Leinen Company acquires all outstanding preferred shares for $106,000 and 60 percent pf the common stock for $870,000. The acquisition-date fair value of the noncontrolling interest in Morgan’s common stock was $580,000. Leinen believed that one of Morgan’s buildings, with a 12-year life, was undervalued by $50,000 on the company’s financial records.
What amount of consolidated goodwill would be recognized from this acquisition?
a.$40,000.
b.$41,200
c.$42,400.
d.$46,000.
We need at least 10 more requests to produce the solution.
0 / 10 have requested this problem solution
The more requests, the faster the answer.