ACME Co Paid $110,000 for the Net Assets of Comb Corp

question 21

Multiple Choice

ACME Co. paid $110,000 for the net assets of Comb Corp. At the time of the acquisition the following information was available related to Comb's balance sheet: What is the amount of goodwill or gain related to the acquisition?

• A)Goodwill of $70,000
• B)Goodwill of $30,000
• C)A gain of $30,000
• D)A gain of $70,000

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Definitions:

Common Law

A legal system based on precedents and judicial decisions rather than statutory laws, originating in England and used in many countries.

Lawful Picketing

Lawful picketing refers to legally protected protest activity by workers outside of a workplace to publicize a dispute, typically regarding labor issues, without breaching peace or law.

Picket Line

A boundary established by workers on strike, especially at the entrance to the place of work, to demonstrate and discourage others from entering the premises.

Termination

The act of ending something, such as a contract, employment, or legal relationship, usually in accordance with predetermined conditions or by mutual agreement.