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On May 31, 2016, Columbanus Company paid $2,000,000 to acquire all of the common stock...

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Accounting

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On May 31, 2016, Columbanus Company paid $2,000,000 to acquire all of the common stock of Mistor Corporation, which became a division of Columbanus. Mistor reported the following balance sheet at the time of the acquisition: It was determined at the date of the purchase that the fair value of the identifiable net assets of Mistor was $1,875,000. At December 31,2016 , Mistor reports the following balance sheet information: The recorded amount for Mistor's net assets (excluding goodwill) is the same as fair value, except for property, plant, and equipment, which has a fair value of $75,000 above the carrying value. Assume the 12/31/16 fair value of the Mistor division is $1,375,000. On 12/31/16, Goodwill reported on the balance sheet is: Select one: a. $100,000 b. $125,000 c. $95,000 d. $50,000 e. $25,000

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