Prince Limited Acquired 100% of the Share Capital of Charming

question 23

Multiple Choice

Prince Limited acquired 100% of the share capital of Charming Limited for a purchase consideration of $190 000. At acquisition date, the net fair value of Charming Limited's assets, liabilities and contingent liabilities was $175 000 including goodwill with a carrying amount of $5 000. The company tax rate is 30%. The unrecorded amount of goodwill that must be recognised on the consolidation worksheet is:

• A) $5 000.
• B) $10 000.
• C) $15 000.
• D) $20 000.

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Definitions:

Nuclear

Pertaining to the nucleus of an atom or to energy produced by nuclear reactions, as well as relating to the core or central part of something.

Extended

Something that is made longer, further reaching, or more comprehensive than originally.

Polygynous

A mating system where a male has more than one female mate at the same time.

Multi-parent

A family structure involving more than two individuals acting in a parenting role, offering care and support to their children.