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Business, 15.11.2019 04:31 xxaizuwu

Amie, inc. has 100,000 shares of $2 par value stock outstanding.

prairie corporation acquired 30,000 of amie's shares on january 1, 2012, for $120,000 when amie's net assets had a total fair value of $350,000.

on july 1, 2015, prairie bought an additional 60,000 shares of amie from a single stockholder for $6 per share.

although amie's shares were selling in the $5 range around july 1, 2015, prairie forecast that obtaining control of amie would produce significant revenue synergies to justify the premium price paid.

if amie's net identifiable assets had a fair market value of $500,000 at july 1, 2015, how much goodwill should prairie report in its post-combination consolidated balance sheet?

a) $60,000

b) $90,000

c) $100,000

d) $0

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Amie, inc. has 100,000 shares of $2 par value stock outstanding.

prairie corporation ac...
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