hard · Financial Accounting
Vanguard Corp acquires a 70% controlling interest in Solaris Inc for $420,000 cash. On the acquisition date, Solaris has identifiable assets with a fair value of $750,000 and liabilities with a fair value of $250,000. The fair value of the 30% noncontrolling interest (NCI) is determined to be $165,000.
Under the full-goodwill method required by ASC 805, what amount of goodwill should Vanguard recognize?
- $70,000
- $55,000
- $150,000
- $85,000
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