Please help based on inforamtion provided in the picture. Thank you On January 1

Question

Please help based on inforamtion provided in the picture. Thank you

On January 1, 2012, a parent company acquired all of the stock of a subsidiary. The following data is available: The acquisition by the parent company represents a 100 percent interest in the subsidiary. On January 1, 2012, the fair value of the subsidiary's assets and liabilities are equal to their book value. The parent company paid $250 for the 100 percent interest in the subsidiary. What amount of goodwill is implied in the purchase?

Explanation / Answer

Goodwill is the price paid less the fair value of the assets minus the liabilities. Here we have 250-210= 40 A

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