Horse corporation acquires all of pony inc for 300000 cash


Horse Corporation acquires all of Pony, Inc. for $300,000 cash. On that date, Pony has net assets with fair value of $250,000 but a book value and tax basis of $200,000. The tax rate is 40 percent. Prior to this date, neither Horse nor Pony has reported any deferred income tax assets or liabilities. What amount of goodwill should be recognized on the date of the acquisition?

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Financial Accounting: Horse corporation acquires all of pony inc for 300000 cash
Reference No:- TGS01072952

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