ACCTSol78.pdf - 31 Award 1.00 point American Outtters...

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31. Award: 1.00 point American Outfitters purchases a company, Canadian Outfitters, for a price of $400,000. American Outfitters assets have a market value of $3M. Canadian Outfitters assets have a book value of $500,000 and a market value of $350,000. Canadian Outfitters liabilities have a market value of $30,000. Canadian Outfitters liabilities have a book value of $50,000. American Outfitters liabilities have a market value of $32,000. What is the amount of Goodwill that results from the purchase of American Outfitters of Canadian Outfitters? $0 as goodwill cannot arise from this type of purchase $0 as goodwill only arises when a company purchases a company in the same line of business as its own and this is unknown in this case
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