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Perch Co. acquired 80% of the common stock of Float Corp for $1,600,000. The fair value of Float's net assets was $1,850,000, and the book value was $1,500,000. The non-controlling interest shares of Float Corp are not actively traded.
1) What is the total amount of goodwill recognized at the date of acquisition?
a) $150,000
b) $250,000
c) $0
d) $120,000
e) $170,000
2. What amount of goodwill should be attributed to the non-controlling interest at the date of acquisition?
a) $0
b) $20,000
c) $30,000
d) $100,000
e) $120,000
Metal cost used in Golf clubs is classified as: A. Variable, product, direct labor, and Manufacturing. B. Direct Labor, Variable, and Product.
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