What did standard rate company record as goodwill

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Reference no: EM131293221

At the beginning of fiscal 2014, Standard Rate Company acquired a small savings and loan association for $68 million. The book value of the assets of the acquired company were $174 million, its liabilities $115 million. An appraiser determined that the acquiree’s land had a fair value of $2 million in excess of its net book value. Standard Rate also determined that the acquiree had an unrecorded liability of $4.5 million relating to a lawsuit. The book value of all other assets and liabilities approximated fair value.

What did Standard Rate Company record as goodwill for this acquisition?

a. $11.5 million

b. $ 9 million

c. $16 million

d. $ -0-

e. None of the above

Reference no: EM131293221

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