Problem 4-10 (LO 4-9) Amie, Inc., has 141,000 shares of $1 par value stock outstanding....

50.1K

Verified Solution

Question

Accounting

image

Problem 4-10 (LO 4-9) Amie, Inc., has 141,000 shares of $1 par value stock outstanding. Prairie Corporation acquired 42,300 of Amie's shares on January 1, 2015, for $84,600 when Amie's net assets had a total fair value of $305,750. On July 1, 2018, Prairie bought an additional 84,600 shares of Amie from a single stockholder for $4 per share. Although Amie's shares were selling in the $3 range around July 1, 2018, Prairie forecasted that obtaining contral of Amie would produce significant revenue synergies to justify the premium price paid. If Amie's identifiable net assets had a fair value of $426,350 at July 1, 2018, how much goodwill should Prairie report in its postcombination consolidated balance sheet? Multiple Choice $81,250 $137650. $42,300 O O

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