Par Inc purchased all of the outstanding common shares of Sub Corp for cash of...
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Accounting
Par Inc purchased all of the outstanding common shares of Sub Corp for cash of $864,487. On the date of acquisition, Sub's assets included $2,161,050 of inventory and land with a book value of $129,575. Sub also had $1,512,779 in liabilities on that date. Sub's book values were equal to their fair market values, with the exception of the company's land, which was estimated to have a fair market value $54,033 higher than its book value. How much goodwill will be created by Par's acquisition of Sub?
a.
$30,978
b.
$32,608
c.
$33,423
d.
$34,238
e.
$31,793
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