Raj Co.acquired all of Event Ltd.'s common shares.At the date of acquisition,Event had $80,000 of goodwill resulting from its acquisition of Baker Ltd.a few years ago.At Raj's date of acquisition,what is the proper treatment of Event's $80,000 of goodwill?
A)Event's goodwill is an identifiable asset and should be included as part of Raj's purchase price discrepancy (PPD).
B)Event's goodwill is an identifiable asset but should not be included as art of Raj's PPD.
C)Event's goodwill is not an identifiable asset but should be included as part of Raj's PPD.
D)Event's goodwill is not an identifiable asset and should not be included as part of Raj's PPD.

Question

Quizplus · Accepted Answer

The Answer of Raj Co.acquired all of Event Ltd.'s common shares.At the date of acquisition,Event had $80,000 of goodwill resulting from its acquisition of Baker Ltd.a few years ago.At Raj's date of acquisition,what is the proper treatment of Event's $80,000 of goodwill?
A)Event's goodwill is an identifiable asset and should be included as part of Raj's purchase price discrepancy (PPD).
B)Event's goodwill is an identifiable asset but should not be included as art of Raj's PPD.
C)Event's goodwill is not an identifiable asset but should be included as part of Raj's PPD.
D)Event's goodwill is not an identifiable asset and should not be included as part of Raj's PPD.

Raj CoAcquired All of Event Ltd