QUESTION 10 Perch Co acquired 80 of the common stock of Floa

QUESTION 10 Perch Co. acquired 80% of the common stock of Float Corp. for $1,600,000. The fair vate the book value was $1,500,000. The non-controlling in of Float\'s net assets was $1,850,000, and terest shares of Float Corp, are not actively traded. What is the dollar amount of fair value over book value differences attributed to Perch at the date of acquisition? O $120,000. O $370,000. O s280,000. O s350,000. O s150,000.

Solution

Calculate dollar amount of fair value over book value difference attributed to perch :

Attributed amount = (1850000-1500000)*80% = 280000

So answer is c) $280000