The amount of Goodwill arising from this business combination is:
A) Nil.
B) $(40,000).
C) $50,000.
D)$64,000.

Name: The amount of Goodwill arising from this business combination is: A) Nil. B) $(40,000). C) $50,000. D)$64,000.
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Question

Quizplus · Accepted Answer

Goodwill is calculated as the excess of the purchase consideration over the fair value of the net identifiable assets acquired. If the purchase consideration exceeds the fair value of the net assets by $50,000, then the goodwill is $50,000.

The Amount of Goodwill Arising from This Business Combination Is