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

This problem has been solved!


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

Step by Step Answer:

Related Book For  answer-question
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