Chapman Company purchased Horace Company for $54,000,000. At the time of purchase, Horaces's identifiable assets equaled $30,000,000. What was the amount of goodwill recorded by Chapman Company at the time of purchase?

Question

Quizplus · Accepted Answer

Goodwill = Purchase price - Identifiable assets 
Goodwill = $54,000,000 - $30,000,000 
Goodwill = $24,000,000. Therefore, option D is the correct answer.

Chapman Company Purchased Horace Company for $54,000,000