On January 1,2012,a parent company acquired all of the stock of a subsidiary.The following data is available: The acquisition by the parent company represents a 100 percent interest in the subsidiary.On January 1,2012,the fair value of the subsidiary's assets and liabilities are equal to their book value.The parent company paid $250 for the 100 percent interest in the subsidiary.What amount of goodwill is implied in the purchase?
A)$0
B)$10
C)$40
D)$200

Question

On January 1,2012,a parent company acquired all of the stock of a subsidiary.The following data is available:  The acquisition by the parent company represents a 100 percent interest in the subsidiary.On January 1,2012,the fair value of the subsidiary's assets and liabilities are equal to their book value.The parent company paid $250 for the 100 percent interest in the subsidiary.What amount of goodwill is implied in the purchase?
A)$0 
B)$10 
C)$40 
D)$200

Quizplus · Accepted Answer

The Answer of On January 1,2012,a parent company acquired all of the stock of a subsidiary.The following data is available:  The acquisition by the parent company represents a 100 percent interest in the subsidiary.On January 1,2012,the fair value of the subsidiary's assets and liabilities are equal to their book value.The parent company paid $250 for the 100 percent interest in the subsidiary.What amount of goodwill is implied in the purchase?
A)$0 
B)$10 
C)$40 
D)$200

On January 1,2012,a Parent Company Acquired All of the Stock