Answer:
total amount of goodwill recognized at the date of acquisition is 650000
Explanation:
given data
ownership = 80%
common stock = $1,200,000
net assets = $850,000
book value = $600,000
to find out
total amount of goodwill recognized at the date of acquisition
solution
we know here goodwill of controlling interest is
goodwill of controlling interest = common stock - ( net asset × ownership )
put here value
goodwill of controlling interest = 1,200,000 - ( 850,000 × 80% )
goodwill of controlling interest = 520000
and total amount of goodwill recognized at the date of acquisition
will be
total amount = [tex]\frac{goodwill interest}{ownership}[/tex]
total amount = [tex]\frac{520000}{0.80}[/tex] = 650000
so total amount of goodwill recognized at the date of acquisition is 650000
