Business combination on blue books


Blue Company acquires Maize Company by acquiring its net assets. On the date of the combination, the book value of Maize's identifiable net assets is $200,000. The fair value of its identifiable net assets is $300,000. Blue pays a total of $350,000 cash for acquiring Maize. The amount of goodwill to be recorded for the business combination on Blue's books is:

a. $100,000

b. $50,000

c. $25,000

d. $300,000

Request for Solution File

Ask an Expert for Answer!!
Accounting Basics: Business combination on blue books
Reference No:- TGS057269

Expected delivery within 24 Hours