Total stockholders' equity of Tucker Company is $4,000,000.The fair market value of Tucker 's net identifiable assets (assets less liabilities)is $5,000,000.Empire Corporation makes an offer to purchase Tucker 's entire business for $5,800,000.In this situation:
A)Tucker Company should report goodwill of $800,000 in its balance sheet.
B)Tucker Company should report goodwill of $1,800,000 in its balance sheet.
C)Empire Corporation is willing to pay $1,800,000 for goodwill generated by Tucker,and Empire will report this goodwill in its balance sheet if the purchase is finalized.
D)Empire Corporation is willing to pay $800,000 for goodwill generated by Tucker,and Empire will report this goodwill in its balance sheet if the purchase is finalized.

Question

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The Answer of Total stockholders' equity of Tucker Company is $4,000,000.The fair market value of Tucker 's net identifiable assets (assets less liabilities)is $5,000,000.Empire Corporation makes an offer to purchase Tucker 's entire business for $5,800,000.In this situation:
A)Tucker Company should report goodwill of $800,000 in its balance sheet.
B)Tucker Company should report goodwill of $1,800,000 in its balance sheet.
C)Empire Corporation is willing to pay $1,800,000 for goodwill generated by Tucker,and Empire will report this goodwill in its balance sheet if the purchase is finalized.
D)Empire Corporation is willing to pay $800,000 for goodwill generated by Tucker,and Empire will report this goodwill in its balance sheet if the purchase is finalized.

Total Stockholders' Equity of Tucker Company Is $4,000,000