Fox Co. acquired 60% of Sox Co. for $900,000. At the acquisition date, Sox had net assets with a book value of $950,000 and a fair value of $1,200,000. What is the amount of goodwill that should be reported on the consolidated SFP under the parent-company extension method and under the entity method? $\begin{array} { l c }
\text { Parent-company extension } & \text { Entity } \\end{array}$

Question

Fox Co. acquired 60% of Sox Co. for $900,000. At the acquisition date, Sox had net assets with a book value of $950,000 and a fair value of $1,200,000. What is the amount of goodwill that should be reported on the consolidated SFP under the parent-company extension method and under the entity method? $\begin{array} { l c } 
\text { Parent-company extension } & \text { Entity } \\end{array}$

Quizplus · Accepted Answer

The Answer of Fox Co. acquired 60% of Sox Co. for $900,000. At the acquisition date, Sox had net assets with a book value of $950,000 and a fair value of $1,200,000. What is the amount of goodwill that should be reported on the consolidated SFP under the parent-company extension method and under the entity method? $\begin{array} { l c } 
\text { Parent-company extension } & \text { Entity } \\end{array}$

Fox Co Acquired 60% of Sox Co Parent-company extension Entity \begin{array} { l c } \text { Parent-company extension } & \text { Entity } \\\end{array} Parent-company extension ​ Entity ​

Fox Co Acquired 60% of Sox Co $\begin{array} { l c } \text { Parent-company extension } & \text { Entity } \\\end{array}$