On November 30, 2017, Arnold Company purchased 100% of the outstanding voting common stock of Compton Corporation for $100,000. At that date the fair market value of Compton assets less liabilities was $80,000. What amount, if any, of goodwill must Arnold recognize in connection with its purchase of Compton? Where should Arnold Company report this amount?

Question

Quizplus · Accepted Answer

The Answer of On November 30, 2017, Arnold Company purchased 100% of the outstanding voting common stock of Compton Corporation for $100,000. At that date the fair market value of Compton assets less liabilities was $80,000. What amount, if any, of goodwill must Arnold recognize in connection with its purchase of Compton? Where should Arnold Company report this amount?

On November 30, 2017, Arnold Company Purchased 100% of the Outstanding