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ABC Company acquires XYZ Company by acquiring its net assets. On the date of the...

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Accounting

ABC Company acquires XYZ Company by acquiring its net assets. On the date of the combination, the book value of XYZs identifiable net assets is $200,000. The fair value of its identifiable net assets is $300,000. ABC pays a total of $350,000 cash for acquiring XYZ. The amount of goodwill to be recorded for the business combination on ABCs books is:

$100,000

$50,000

$200,000

$300,000

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