Fill This Form To Receive Instant Help
Homework answers / question archive / Question 3 Not yet answered Marked out of 2 p Flag question Summer acquired 70% of the ordinary shares of Winter for €100,000 on 31 December 20x3 when the net assets of Winter were €110,000 The goodwill arising on the acquisition of Winter is: Select one: O a
Question 3 Not yet answered Marked out of 2 p Flag question Summer acquired 70% of the ordinary shares of Winter for €100,000 on 31 December 20x3 when the net assets of Winter were €110,000 The goodwill arising on the acquisition of Winter is: Select one: O a. €10,000 positive O b.623,000 positive OC. €40.000 positive d. €10,000 negative
The answer is €23,000 positive
Goodwill = Actual Amount Paid - Value of net asset for % purchased
= €100,000 - 70% of €110,000
= €100,000 - €77,000
= €23,000