Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. koko co. purchased a 30% interest in lange enterpr

Koko Co. purchased a 30% interest in Lange Enterprises on December 31, 2014 for $200,000....

50.1K

Verified Solution

Question

Accounting

Koko Co. purchased a 30% interest in Lange Enterprises on December 31, 2014 for $200,000. On that date, Lange's net assets had a book value of $500,000 and fair value of $600,000. What amount of goodwill resulted from this acquisition?

a. $0

b. $40,000

c. $60,000

d. $100,000

The answer is B but I don't understand why.

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Civil Engineering
1.2K views

Mix No. Water-cement ratio Cementitious Content Fine Aggregate ratio 28-day Compressive strength 1 0.38 350 0.35 39.7 2 0.4 38.8 3 0.45 39.1 4 375 0.35 34.1 5 0.4 38.2 6 0.45 40.6 7 400 0.35 34.2 8 0.4 39.3 9 0.45 39.8 10 0.43 350 0.35 27.9 11 0.4 37.4 12 0.45 38.5 13 375 0.35 31.9 14 0.4 37.1 15 0.45 33.9 16 400 0.35 26.5 17 0.4 30.7 18 0.45 26.5 19 0.48 350 0.35 30 20 0.4 32.1 21 0.45 30.5 22 375 0.35 20.7 23 0.4 27.5 24 0.45 39.9 25 400 0.35 25.4 26 0.4 31 27 0.45 25.3 Shamsad A., Saeid A. Alghamdi (2014), "A Statistical...

Biology
1.2K views

One difference between sieve-tube cells and vessel elements is that sieve-tube cells are __ but...

Physics
1.2K views

At t 0 a sound source S and observers 0 O2 are placed as shown...

Basic Math
1.2K views

Jamaal ran 6 miles in 30 minutes. Which expression shows how to correctly determine his...

Statistics
1.2K views

1 Inability to get along with others is the reason cited in 17 of worker...

Calculus
1.2K views

Suppose that A 2 4 6 B 2 6 C 4 6 and D 4...

Algebra
1.2K views

2. A contestant on a game show spins a wheel that is located on a...

Algebra
1.2K views

2 4 Identify the equation for the graph A y x 1 x 2 x...

Accounting
1.2K views

Can fundamental analysis be profitable, or are markets just too efficient to justify the effort?...

Accounting
1.2K views

Exercise 7-23 (Algorithmic) (40,2) Awoming that Colvin is single, determene his tox consecuences as a...

Accounting
1.2K views

The Distance Plus partnership has the following capital balances at the beginning of the current...

Finance
1.2K views

1. Case study instructions Kindly peruse and analyze the case thoroughly so you can answer...