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A company pays $95,000 in cash and stock to acquire 80% of the voting stock of...

A company pays $95,000 in cash and stock to acquire 80% of the voting stock of another company. The fair value of the noncontrolling interest is $21,250. The book value of the acquired company is $66,250, and no revaluations of acquired identifiable net assets are necessary.

What percentage of total goodwill is allocated to the controlling interest, following U.S. GAAP?

Select one:

A. 84%

B. 86%

C. 80%

D. 82%

Business   Accounting   
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