Caloundra Ltd Has All of Its Identifiable Net Assets Recorded

question 17

Multiple Choice

Caloundra Ltd has all of its identifiable net assets recorded in its books at fair value.Bellvista Ltd acquired all of the issued share capital of Caloundra Ltd for $100 000.At the date of acquisition,the equity of Caloundra Ltd consisted of: $65 000 share capital and $20 000 retained earnings.The amount of goodwill acquired is:

• A)$35 000
• B)$15 000
• C)$0
• D)$80 000

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Definitions:

Private Ownership

The possession of property by individuals or legal entities other than the government.

Clearly Defined

Specifically and unambiguously articulated or delineated.

Private Owner

An individual or entity that legally possesses property or a business and has exclusive rights over its use and distribution.

Economic Significance

The measure of the impact that an event, policy, or market trend has on economic factors such as growth, employment, inflation, and investment.