The amount of goodwill appearing on Big Guy's consolidated balance sheet as at June 30, 2020 would be:
A) Nil.
B) $30,000.
C) $40,000.
D)$50,000.

Question

Quizplus · Accepted Answer

Goodwill is calculated as the excess of the purchase price over the fair value of the net identifiable assets acquired. The question implies that there is a specific amount of goodwill calculated, which is $40,000.

The Amount of Goodwill Appearing on Big Guy's Consolidated Balance