FREE Trial

The Balance Sheet of a sole trader is as follows. A company purchased the business, paying for the tangible fixed

Question:

The Balance Sheet of a sole trader is as follows.

A company purchased the business, paying for the tangible fixed assets and the net current assets at the valuations shown above. 

The company settled the purchase price by issuing 200 000 ordinary shares of $1 at $1.50 per share. How much did the company pay for Goodwill? 

A. $30 000 

B. $50 000 

C. $120 000 

D. $150 000

Transcribed Image Text:

Fixed assets Intangible: Goodwill Tangible Net current assets $ 30 000 100 000 50 000 180 000

This problem has been solved!


Do you need an answer to a question different from the above? Ask your question!

Step by Step Answer:

Answer rating: 100% (QA)

The company settled the purchase price by issuing 200 000 ordinary shares of 1 at 1 50 per s…View the full answer


answer-question
Answered By
tutor-profile-image
Faith Chebet
In the past two years many of my students have excell with the knowledge I taught them.
0.00 0 Reviews 10+ Question Solved
Related Book For  answer-question
Accounting A Level And AS Level

Accounting A Level And AS Level

ISBN: 9780521539937

1st Edition

Authors: Harold Randall

See More Books
Question Details
Chapter # 26- Business purchase
Section: Multiple Choice Questions
Problem: 3
View Solution
Create a free account to access the answer
Cannot find your solution?
Post a FREE question now and get an answer within minutes. * Average response time.
Question Posted: August 28, 2023 13:37:11
See More Questions

Students also viewed these Business questions

Q:
1 Capital Budgeting Group Assignment 2 Principles of Financial Management FINC 3310 - Fall 2022 Professor Ken Globerman 3 4 5 Assignment Learning Objectives: 6 (a) Develop a proforma project income...
A:
Click to View...
Q:
The following partial information is contained in the variance analysis received from the Western Plant of Eastlawn Company. All plants at Eastlawn apply overhead on the basis of direct labor-hours....
A:
a Variable Overhead Analysis Actual variable overhead incurred 100 800 Actual direct labor hours wor......
Q:
Assess the requirements of the Sarbanes-Oxley Act related to accounting quality, indicating whether or not you believe the requirements are sufficient to protect stockholders and potential investors....
A:
a the ethical requirements as outlined in the Sarbanes Oxley act are as follows Implement......
Q:
Lopez Company uses a job order cost accounting system that charges overhead to jobs on the basis of direct material cost. At year-end, the Goods in Process Inventory account shows the following. 1....
A:
1 2 Total cost of job in process given 90 00......
Q:
For fiscal year 2012, Mango Computer, Inc., reported net sales of $19,323 million, net income of $1,997 million, and no significant discontinued operations, extraordinary items, or accounting...
A:
Estimated value Earnings per share 2 20 44 00 o......
Q:
Given the following variance-covariance matrix, calculate the covariance between portfolio A, which has 10% in asset 1 and 90% in asset 2, and portfolio B, which has 60% in asset 1 and 40% in asset...
A:
Using matrix notation the definition of covariance......
Q:
(a) Explain why the following equilibrium lies far to the right. (b) Chemists had always assumed that this reaction would be so fast that compound A could never be isolated. However, this compound...
A:
Toluene has added stability associated with aromaticity compound A although conjugated is not aromat......
Q:
When a dispute arises between an audit client and its auditor regarding the proper accounting treatment for a transaction or other item, the audit client will sometimes retain another accounting firm...
A:
To begin with a little background information on SAS No 50 that you may find helpful AU Section 625 incorporates SAS No 50 Reports on the Application......
Q:
Your client, Sarah has escape-maintained screaming during a difficult vocabulary program. Your BCBA has instructed you to give Sarah 1 poker chip for each correct vocabulary word and to give her a...
A:
Answer i The procedure being used for Sarah is a form of Differential Reinforcement of Other Behavio......
Q:
FRS 18 (Accounting policies) lists four accounting principles. Which of the following is stated by the standard to be a desirable principle? A. Accruals B. Consistency C. Going concern D. Historical...
A:
The desirable principle mentioned in FRS 18 Accounti......
Q:
Spaid and Shuvell are partners in a business and their Balance Sheet at 31 December 2004 is as follows. The partners have accepted an offer from Digger Ltd to purchase the business for $118 000. The...
A:
Assets Amount Fixed Assets Land and buildings 50 000 Fixt......
Q:
Graph each horizontal parabola, and give the domain and range. (y - 2) 2 = 24(x - 3)
A:
y 2 24 x 3 has the form y k 4p xh with h 3 k 2 and......
Q:
Why would a public defender engage in plea bargaining?
A:
A public defender may engage in plea bargaining for several reasons 1 Efficiency Public defenders of......
Q:
What are the basic methods used to impose judicial discipline and removal?
A:
Judicial discipline and removal typically involve several methods Judicial Conduct Boards Many juris......
Q:
What are the conflicting views of plea bargaining?
A:
Plea bargaining is a common practice in the criminal justice system where prosecutors and defense attorneys negotiate a resolution to a criminal case......
Q:
What are the two primary factors considered by prosecutors when deciding if a case is to be prosecuted?
A:
The two primary factors considered by prosecutors when deciding if a case is to be prosecuted are 1......
Q:
Why is accountability almost completely absent in the merit system?
A:
The merit system which is designed to hire and promote based on qualifications and performance is ge......
Q:
What is the difference between a perpetual inventory system and a periodic inventory system?
A:
A perpetual inventory system involves maintaining a continuous record of purc......
Q:
Find the numerical value of each expression. (a) sech 0 (b) cosh -1 1
A:
a b......
Q:
Identify when leadership may not be necessary.
A:
According to the Substitutes and Neutralizers to Leadership Theory the following variables......
Q:
Does charismatic/transformational leadership generalize across cultures?
A:
In general yes it does but its expression may......
Q:
Contrast leadership and power.
A:
Power and leadership differ in three major areas 1 Goal Compatibilit......
Noubesty Sumi Ink Brush - ISBN: B08TWL6J23 - Free Book