Turner Has £4

question 88

Multiple Choice

Turner has £4.2 million in net working capital.The firm has fixed assets with a book value of £48.6 million and a market value of £53.4 million.Martin & Sons is buying Turner for £60 million in cash.
The acquisition will be recorded using the purchase accounting method.What is the amount of
Goodwill that Martin & Sons will record on its balance sheet as a result of this acquisition?

• A)£0
• B)£2.4 million
• C)£6.6 million
• D)£7.2 million
• E)£11.4 million

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