The DOC Corporation with a book value of $20 million and a market value of $30 million has merged with the CIC Corporation with a book value of $6 million and a market value of $8 million at a price of $9 million. If the transaction is a purchase will there be any goodwill, and if so, what is the amount of goodwill?

Question

TuteeHUB · Accepted Answer

Cannot be calculated with the information given

TuteeHUB · Answer

No goodwill; 0

TuteeHUB · Answer

Yes goodwill; 3

TuteeHUB · Answer

Yes goodwill; 1

TuteeHUB · Answer

Cannot be calculated with the information given

1.	The DOC Corporation with a book value of $20 million and a market value of $30 million has merged with the CIC Corporation with a book value of $6 million and a market value of $8 million at a price of $9 million. If the transaction is a purchase will there be any goodwill, and if so, what is the amount of goodwill?
A.	No goodwill; 0
B.	Yes goodwill; 3
C.	Yes goodwill; 1
D.	Cannot be calculated with the information given
Answer» D. Cannot be calculated with the information given

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