Peach co acquired 80 of the common stock of float corp for, Ask an Expert

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Peach 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 noncontrolling interest shares of Float Corp. are not actively traded. Please select correct answer for the following four questions: (Show your computation steps) (Total 8 points)

4-1. 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.

4-2. What amount of goodwill should be attributed to Peach at the date of acquisition?

A. $150,000. B. $250,000. C. $0. D. $120,000. E. $170,000.

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