Lancaster Inc. purchases all the outstanding stock of Lucy Company for $4,500,000. The net assets...
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Lancaster Inc. purchases all the outstanding stock of Lucy Company for $4,500,000. The net assets of Lucy have a fair value of $2,900,000, including a patent with a book value of $4,700 and a fair value of $159,000. At what amount should the patent and any goodwill from this purchase be shown on consolidated financial statements on the date of purchase? a. Patent$4,700, Goodwill$0 b. Patent$159,000, Goodwill$2,900,000 c. Patent$159,000, Goodwill$1,600,000 d. Patent$4,700, Goodwill$4,500,000
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