P Company acquires all of the voting stock of S Company for $930,000 cash. The book values of S Company's assets are $800,000, but the fair values are $840,000 because land has a fair value above its book value. Goodwill from the combination is computed as:
A) $130,000.
B) $90,000.
C) $40,000.
D) $0.

Question

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The Answer of P Company acquires all of the voting stock of S Company for $930,000 cash. The book values of S Company's assets are $800,000, but the fair values are $840,000 because land has a fair value above its book value. Goodwill from the combination is computed as:
A) $130,000.
B) $90,000.
C) $40,000.
D) $0.

P Company Acquires All of the Voting Stock of S