What is the total amount of goodwill recognized at the date of acquisition?
A) $150,000.
B) $250,000.
C) $ 0.
D) $120,000.
E) $170,000.

Question

Quizplus · Accepted Answer

Goodwill is recognized at the date of acquisition as the excess of the purchase price over the fair value of identifiable net assets. In this case, the purchase price is $400,000 and the fair value of identifiable net assets is $250,000. Therefore, the total amount of goodwill recognized at the date of acquisition is $150,000.

What Is the Total Amount of Goodwill Recognized at the Date