Create an Account

Already have account?

Forgot Your Password ?

Home / Questions / On January 2, Year 1 Parent Company paid $1,200,000 for 100% of the voting common stock of

On January 2, Year 1 Parent Company paid $1,200,000 for 100% of the voting common stock of

On January 2, Year 1 Parent Company paid $1,200,000 for 100% of the voting common stock of Sub Corp. At the time of the investment, Sub Corp had net assets with a book value of $800,000 and fair value of $1,000,000. The fair value increase is attributable to the building and will be amortized over 10 years. During year 1, Sub earned net income of $100,000 and paid dividends of $20,000. Any excess cost over fair value is attributable to goodwill with an indefinite life. What is the amount of goodwill from Parent’s investment in Sub?

Nov 10 2017 View more View Less

Answer (UnSolved)

question Get Solution

Related Questions