On January 1,2016,Pamela Company purchased 75% of the common stock of Snicker Company.Separate balance sheet data for the companies at the combination date are given below: Determine below what the consolidated balance would be for each of the requested accounts on January 2,2016.
What amount of goodwill will be reported?
A)($20,000)
B)($25,000)
C)$25,000
D)$0

Question

On January 1,2016,Pamela Company purchased 75% of the common stock of Snicker Company.Separate balance sheet data for the companies at the combination date are given below:  Determine below what the consolidated balance would be for each of the requested accounts on January 2,2016.
What amount of goodwill will be reported?
A)($20,000) 
B)($25,000) 
C)$25,000 
D)$0

Quizplus · Accepted Answer

The Answer is D

On January 1,2016,Pamela Company Purchased 75% of the Common Stock