Compute consolidated goodwill immediately following the acquisition

A)  $440.

B)  $442.

C)  $450.

D)  $455.

E)  $452.

Answer: D

Learning Objective: 02-04

Learning Objective: 02-05 

Topic: Contingent consideration

Topic: Acquisition―Calculate goodwill or bargain

Difficulty: 2 Medium 

Blooms: Apply

AACSB: Knowledge Application

AICPA: BB Critical Thinking

AICPA: FN Measurement

Feedback: $35 fair value × 50shares = $1,750 – ($1,300 – $5 Contingency) = $455