On January 1,20X8,Parsley Corporation acquired 75 percent of Sage Company's voting common stock for $90,000 cash.At that date,the fair value of the noncontrolling interest was $30,000.Sage's balance sheet at the date of acquisition contained the following balances:
At the date of acquisition,the reported book values of Sage's assets and liabilities approximated fair value.Consolidating entries are being made to prepare a consolidated balance sheet immediately following the business combination.
-Based on the preceding information,the amount of goodwill reported is:
A)$0.
B)$10,000.
C)$15,000.
D)$20,000.

Question

On January 1,20X8,Parsley Corporation acquired 75 percent of Sage Company's voting common stock for $90,000 cash.At that date,the fair value of the noncontrolling interest was $30,000.Sage's balance sheet at the date of acquisition contained the following balances:
  At the date of acquisition,the reported book values of Sage's assets and liabilities approximated fair value.Consolidating entries are being made to prepare a consolidated balance sheet immediately following the business combination.
-Based on the preceding information,the amount of goodwill reported is:
A)$0. 
B)$10,000. 
C)$15,000. 
D)$20,000.

Quizplus · Accepted Answer

The Answer of On January 1,20X8,Parsley Corporation acquired 75 percent of Sage Company's voting common stock for $90,000 cash.At that date,the fair value of the noncontrolling interest was $30,000.Sage's balance sheet at the date of acquisition contained the following balances:
  At the date of acquisition,the reported book values of Sage's assets and liabilities approximated fair value.Consolidating entries are being made to prepare a consolidated balance sheet immediately following the business combination.
-Based on the preceding information,the amount of goodwill reported is:
A)$0. 
B)$10,000. 
C)$15,000. 
D)$20,000.

On January 1,20X8,Parsley Corporation Acquired 75 Percent of Sage Company's