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Grande Company Purchases Enfant Company for €13,985,000 Cash on January

Question 85

Multiple Choice

Grande Company purchases Enfant Company for €13,985,000 cash on January 1, 2011.The book value of Enfant Company's net assets reported on its December 31, 2010 statement of financial position was €12,620,000.Grande's December 31, 2010 analysis indicated that the fair value of Enfant's tangible assets exceeded the book value by €560,000, and the fair value of identifiable intangible assets exceeded book value by €245,000.How much goodwill should be recognized by Grande Company when recording the purchase of Enfant?


A) $ -0-
B) €560,000
C) €1,365,000
D) €2,170,000

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