Bellvista Limited Acquired the Net Assets and Contingent Liabilities of Aroona

question 13

Multiple Choice

Bellvista Limited acquired the net assets and contingent liabilities of Aroona Limited for a purchase consideration of $600 000. Aroona Limited's net assets and contingent liabilities at fair value were: total assets $840 000; total liabilities $300 000; and contingent liabilities $100 000. The amount of goodwill to be recognised by Bellvista Limited when recording the business combination is:

• A) $160 000.
• B) $260 000.
• C) $400 000.
• D) $440 000.

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Definitions:

Stability

The state or quality of being stable; firmness in position, continuity without change, dependability, or resistance to change.

Nurture

In psychology, this term emphasizes the role of environmental factors and experiences in shaping an individual's development, as opposed to genetic inheritance.

Association Areas

Regions of the cerebral cortex that integrate and process information from the sensory and motor areas, involved in complex functions such as language, problem solving, and spatial reasoning.

Neural Networks

Computational models designed to simulate the behavior of biological neural networks, capable of learning tasks by considering examples without being programmed with task-specific rules.