The board of directors of Banking Enterprises, Inc., a holding company with 25 subsidiaryfederally chartered banks, has offered $2,500,000 to Mary Phillips, the 40%

The board of directors of Banking Enterprises, Inc., a holding company with 25 subsidiaryfederally chartered banks, has offered $2,500,000 to Mary Phillips, the 40%
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The board of directors of Banking Enterprises, Inc., a holding company with 25 subsidiaryfederally chartered banks, has offered $2,500,000 to Mary Phillips, the 40% minoritystockholder of Bank of Provence, for the entire 40% interest, which has a carrying amountof $1,800,000 in the consolidated balance sheet of Banking Enterprises, Inc. and subsidiaries.In a discussion of the appropriate accounting for the $700,000 differencebetween the amount offered and the carrying amount,Banking`schief financial officer, Wendell Casey, supports recognition of goodwill. However,controller John Winston of Banking Enterprises, Inc., believes that some of the $700,000represents a greenmail-type loss, and should be recognized as such. In an appearance beforeBanking”s board, both Casey and Winston argue their positions forcefully. The boardinstructs the two men to consult with the engagement partner of Banking”sindependentauditingfirm, Crandall & Lowe, CPAs, to resolve the matter. Instructions  Assume you are the above-described partner of Crandall & Lowe, CPAs. How would youresolve the dispute between Wendell Casey and John Winston? Explain, including mentionof the additional information you would need

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