On January 1, 2014, assume the fair values of Savannahs identifiable assets and liabilities equal book values. What is the change in the amount of goodwill associated with the issuance of 80,000 additional shares to Goldberg? (Use four decimal places.)
A. Increase goodwill $38,176.
B. Decrease goodwill $38,176.
C. Increase goodwill $384,000.
D. Decrease goodwill $384,000.
Answer:B
On January 1, 2014, assume the fair values of Savannahs identifiable assets and liabilities equal book values. What is the change in the amount of goodwill associated with the issuance of 80,000 additional shares to Goldberg? (Use four decimal places.)
A. Increase goodwill $38,176. B. Decrease goodwill $38,176. C. Increase goodwill $384,000. D. Decrease goodwill $384,000.
Explanation: B) Savannahs equity after the issuance of