Maroons Limited Acquired the Net Assets and Contingent Liabilities of Lewis

question 43

Multiple Choice

Maroons Limited acquired the net assets and contingent liabilities of Lewis Limited for $60 000. Lewis Limited's net assets and contingent liabilities were: total assets $84 000; total liabilities $10 000; and contingent liabilities $12 000. Maroons Limited will record a:

• A) goodwill of $2000.
• B) gain on bargain purchase of $2000.
• C) goodwill of $14 000.
• D) gain on bargain purchase of $60 000.

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Definitions:

Just-in-time

An inventory management system where materials or products are produced or acquired only as needed for use, reducing inventory costs.

Customer Demand

The desire and willingness of consumers to purchase goods or services at a particular price and time.

Distribution Center Design

The planning and layout of a facility used for the storage, handling, and distribution of goods to ensure efficient and effective supply chain operations.

Just-in-time (JIT)

A production and inventory strategy that manufactures or acquires goods only as needed for immediate use, reducing waste and improving efficiency.