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Business, 14.04.2020 21:07 badaxz

Bullen Inc. acquired 100% of the voting common stock of Vicker Inc. on January 1, 2018. The book value and fair value of Vickers accounts on that date (prior to creating the combination) are as follows, along with the book value of Bullen's accounts:

Bullen Book Value Vicker Book Value Vicker Fair Value
Retained Earnings 1/1/X1 $250,000 $240,000
Cash and Receivables $170,000 $70,000 $70,000
Inventory $230,000 $170,000 $210,000
Land $280,000 $220,000 $240,000
Buildings (net) $480,000 $240,000 $270,000
Equipment (net) $120,000 $90,000 $90,000
Liabilities $650,000 $430,000 $420,000
Common stock $360,000 $80,000
Additional paid-in capital $20,000 $40,000

Assume that Bullen paid a total of $480,000 in cash for all of the shares of Vicker. In addition, Bullen paid $35,000 for secretarial and management time allocated to the acquisition transaction. What will be the balance in consolidated goodwill?

A. $0.

B. $20,000.

C. $35,000.

D. $55,000.

E. $65,000.

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Bullen Inc. acquired 100% of the voting common stock of Vicker Inc. on January 1, 2018. The book val...
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