White Ltd Acquired the Net Assets of Black Ltd for $140

question 63

Multiple Choice

White Ltd acquired the net assets of Black Ltd for $140 000.At the date of purchase the fair value the net assets acquired was:
$
Plant and equipment 110 000
Inventory 37 000
Bank overdraft (20 000)
The value of purchased goodwill recorded by White Ltd is:

• A)$7000.
• B)$27 000.
• C)$13 000.
• D)$0.

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Definitions:

SSE

Sum of Squared Errors; a measure of the discrepancy between the data and an estimation model, representing the total deviation of the response values from the fit values.

Null Hypothesis

A hypothesis in statistical inference and testing that suggests no significant difference or effect, intending for it to be challenged by the alternative hypothesis.

Multiple Regression Model

A statistical technique that models the relationship between a dependent variable and two or more independent variables.

Independent Variables

Variables in an experiment or model that are manipulated to observe their effect on dependent variables.