What is the goodwill on the consolidated balance sheet for Pamplin and Subsidiaries on December 31, 2014 based on Pamplin’s purchase of Sage’s common stock?
A. $140,000
B. $240,000
C. $290,000
D. $306,667
Answer:D
What is the goodwill on the consolidated balance sheet for Pamplin and Subsidiaries on December 31, 2014 based on Pamplin’s purchase of Sage’s common stock?
A. $140,000 B. $240,000 C. $290,000 D. $306,667
Explanation: D) Implied fair value ($1,500,000/0.90) $1,666,667