medium · Financial Accounting assets

Acquirer Corp buys Target Co for $2,500,000 in cash. Target's identifiable assets have a fair value of $3,200,000 and it has liabilities with a fair value of $1,100,000.

Under ASC 805, what is the amount of Goodwill recognized?

  1. $700,000
  2. $400,000
  3. $1,400,000
  4. $0

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