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On January 1, 2013, Poole Company purchased 75% of the common stock of Swimmer Company.Separate balance sheet data for the companies at the combination date are given below: Determine below what the consolidated balance would be for each of the requested accounts on January 2, 2013.
-What amount of goodwill will be reported?
A)$26,667.
B)$20,000.
C)$42,000.
D)$86,667.

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Use the following information to answer questions 
On January 1, 2013, Poole Company purchased 75% of the common stock of Swimmer Company.Separate balance sheet data for the companies at the combination date are given below:  Determine below what the consolidated balance would be for each of the requested accounts on January 2, 2013.
-What amount of goodwill will be reported?
A)$26,667. 
B)$20,000. 
C)$42,000. 
D)$86,667.

Quizplus · Accepted Answer

Goodwill is calculated as the excess of the purchase price over the fair value of the net identifiable assets acquired. The correct amount of goodwill reported is $26,667.

Use the Following Information to Answer Questions