XYZ Limited Paid $2 Million for 100 Per Cent of the Voting

question 13

Multiple Choice

XYZ Limited paid $2 million for 100 per cent of the voting shares of ABC Limited and determined the assets to be worth $3 million and the liabilities $800 000. What was the goodwill on consolidation at the date of acquisition?

• A) $100 000
• B) $200 000
• C) $300 000
• D) None of the above

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Definitions:

Philosophical Argument

A reasoned and logical discourse aimed at uncovering the truth through the examination of ideas, concepts, and premises.

Free Will

The ability of agents to make choices unconstrained by certain factors.

Environment

The sum of all external conditions and influences affecting the life, development, and survival of an organism or group of organisms.

Needs Hierarchy

A motivational theory proposed by Abraham Maslow that suggests human needs are arranged in a hierarchy, from most to least important.