Bully Ltd acquires all the business assets and liabilities of Small Ltd for $700,000 cash. The best estimates of the fair market values of the assets and liabilities are:
$$\begin{array} { l r }
& \$ \
\text { Receivables } & 180000 \
\text { Payables } & 90000 \
\text { Inventories } & 120000 \
\text { Property } & 210000 \
\text { Equipment } & 80000
\end{array}$$
What is the value of goodwill acquired by Bully Ltd?
A) $20 000
B) $110 000
C) $200 000
D) $500 000.

Question

Bully Ltd acquires all the business assets and liabilities of Small Ltd for $700,000 cash. The best estimates of the fair market values of the assets and liabilities are:
$$\begin{array} { l r } 
& \$ \
\text { Receivables } & 180000 \
\text { Payables } & 90000 \
\text { Inventories } & 120000 \
\text { Property } & 210000 \
\text { Equipment } & 80000
\end{array}$$
What is the value of goodwill acquired by Bully Ltd?
A) $20 000
B) $110 000
C) $200 000
D) $500 000.

Quizplus · Accepted Answer

The Answer of Bully Ltd acquires all the business assets and liabilities of Small Ltd for $700,000 cash. The best estimates of the fair market values of the assets and liabilities are:
$$\begin{array} { l r } 
& \$ \
\text { Receivables } & 180000 \
\text { Payables } & 90000 \
\text { Inventories } & 120000 \
\text { Property } & 210000 \
\text { Equipment } & 80000
\end{array}$$
What is the value of goodwill acquired by Bully Ltd?
A) $20 000
B) $110 000
C) $200 000
D) $500 000.

Bully Ltd Acquires All the Business Assets and Liabilities of Small