Amount of Goodwill should be recognized According to Economic Unit Concept
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Perch Co. acquired 80% of the common stock of Float Corp. for $1,600,000. The fair market value of Float's net assets was $1,850,000, and the book value was $1,500,000.
What amount of Goodwill should have been recognized according to the Economic Unit Concept?
A $150,000
B $250,000
C $0
D $120,000
E $170,000
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The solution examines the amount of Goodwill which should be recognized according to economic unit concept.
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