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.

---

Definitions:

Binomial Distribution

Distribution of probabilities for a binomial variable.

Categories

Distinct groups or divisions within a variable in which data can be classified.

Probability

A measure of the likelihood that an event will occur, often expressed as a number between 0 and 1.

Research Hypotheses

Research hypotheses are statements made by researchers predicting a relationship between two or more variables in a study.