Attributable to goodwill


On January 2, 2011, Oscar Company paid $800,000 for 30% of the voting common stock of Felix Corp. At the time of the investment, Felix had net assets with a book value and fair value of $2,400,000. During 2011, Felix earned net income of $200,000 and paid dividends of $60,000. Any excess cost over book value is attributable to goodwill with an indefinite life.

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Accounting Basics: Attributable to goodwill
Reference No:- TGS041739

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