Advanced Accounting 10th Edition by Thomas Schaefer, Joe Ben Hoyle, Timothy Doupnik

تمرين 23

AB is a private not-for-profit organization.It acquires YZ, another private not-for-profit organization.The acquisition value is $1 million.YZ has net assets with a book value of $600,000 but a fair value of $700,000.Officials for AB expect that YZ will be predominantly supported by contributions in the future.After the acquisition, what amount of goodwill will be reportedon the combined balance sheet
a.$-0-.
b.$100,000.
c.$300,000.
d.$400,000.