On October 1,20X3,Pole Corporation paid $450,000 for all of Stick Company's outstanding common stock.On that date,the book values and fair values of Stick's recorded assets and liabilities were as follows:

-Based on the preceding information,what amount should be allocated to goodwill in the consolidated balance sheet prepared immediately after the combination?
A)$110,000.
B)$65,000.
C)$45,000.
D)$0.

Question

On October 1,20X3,Pole Corporation paid $450,000 for all of Stick Company's outstanding common stock.On that date,the book values and fair values of Stick's recorded assets and liabilities were as follows:
 
-Based on the preceding information,what amount should be allocated to goodwill in the consolidated balance sheet prepared immediately after the combination?
A)$110,000. 
B)$65,000. 
C)$45,000. 
D)$0.

Quizplus · Accepted Answer

The Answer is C

On October 1,20X3,Pole Corporation Paid $450,000 for All of Stick