The DOC Corporation with a book value of $20 million and a market value of $30 million has merged with the CIC Corporation with a book value of $6 million and a market value of $8 million at a price of $9 million. If the transaction is a purchase will there be any goodwill, and if so, what is the amount of goodwill?
Answer: C
Purchase method: MV(DOC) + MV(CEC) + Goodwill = 30 + 8 + 1 = 39