On April 1, year 1, Parson Corp. purchased 80% of the outstanding stock of Sloan Corp.

for
700,000 cash. Parson determined that the fair value of the net identifiable assets was 800,000
on the date of acquisition. The fair value of Sloan’s stock at date of acquisition was 18 per
share. Sloan had a total of 50,000 shares of stock issued and outstanding prior to the
acquisition. What is the amount of goodwill that should be recorded by Parson at date of
acquisition?
 80,000
On June 30, 2018, Wyler Corporation acquires Boston Corporation in a transaction properly
accounted for as a business acquisition. At the time of the acquisition, some of the information
for valuing assets was incomplete. How should Corporation Wyler, account for the incomplete
information in preparing its financial statements immediately after the acquisition?
Record the uncertain items at a provisional amount measured at the date of acquisition.
When does the measurement period end for a business combination in which there was
incomplete accounting information on the date of acquisition?
When the acquirer receives the information or one year from the acquisition date, whichever
occurs earlier.