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

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

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

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