Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. orion inc. has a 40 percent interest in petra comp

Orion Inc. has a 40 percent interest in Petra Company, reported using the equity method,...

90.2K

Verified Solution

Question

Accounting

Orion Inc. has a 40 percent interest in Petra Company, reported using the equity method, and carried at $25 million. Orion acquires the remaining stock of Petra for $80 million. The fair value of the equity method investment at the date Orion buys the remaining stock is $22 million. The fair value of Petras identifiable net assets is $50 million. What amount of goodwill is recognized when the remaining stock is acquired?
Select one:
a.
$52 million
b.
$30 million
c.
$55 million
d.
$0

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

Assume a bank with the following balance sheet at the end of the financial year. Assets Amount...

Finance
Q

my topic is \"mudguard fender of motorbike\" this is the product i seleted. so i want \"...

Mechanical Engineering
Q

Assume you have been recently hired by the Department of Transportation (DoT) to analyze motorized vehicle...

Advance Math
Q

Below is budgeted production and sales information for Octofic Cans, Inc. for the month of March:   Aluminum     Tin Estimated...

Accounting
Q

Phylum is the highest taxonomic level above kingdom O True False

Biology
Q

If you make a mistake on a check that cannot be easily corrected you should...

Basic Math
Q

The Stationery Company purchased merchandise on account from a supplier for $11,600, terms 2/10, n/30....

Basic Math
Q

A savings account had an initial deposit of $50 with $20 deposited each month after...

Basic Math
Q

The purpose of this question is to do the preliminary work to make a well...

Algebra
Q

An employee works 39 regular work week in August 2018. He was hired six years...

Accounting
Q

Concord Corporation has the following transactions related to notes receivable during the last 2 months...

Accounting
Q

The tax forms available for conducting a business entity include the:? Sole proprietorship. Partnership. Corporation....

Accounting