Following its acquisition of the net assets of Burnt Company, Primrose Company assigned goodwill of $60,000 to one of the reporting divisions. Information for this division follows: Based on the preceding information, what amount of goodwill will be reported for this division if its fair value is determined to be $200,000?
A) $0
B) $60,000
C) $30,000
D) $10,000

Question

Following its acquisition of the net assets of Burnt Company, Primrose Company assigned goodwill of $60,000 to one of the reporting divisions. Information for this division follows:  Based on the preceding information, what amount of goodwill will be reported for this division if its fair value is determined to be $200,000?
A) $0 
B) $60,000 
C) $30,000 
D) $10,000

Quizplus · Accepted Answer

The Answer of Following its acquisition of the net assets of Burnt Company, Primrose Company assigned goodwill of $60,000 to one of the reporting divisions. Information for this division follows:  Based on the preceding information, what amount of goodwill will be reported for this division if its fair value is determined to be $200,000?
A) $0 
B) $60,000 
C) $30,000 
D) $10,000

Following Its Acquisition of the Net Assets of Burnt Company