Gargantua Ltd Paid $1 000 000 for 75 Per Cent

question 10

Multiple Choice

Gargantua Ltd paid $1 000 000 for 75 per cent of the voting shares of Dwarf Ltd, and evaluated Dwarf's assets to be worth $1 500 000 and its liabilities $300 000. 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:

Most Frequent

The outcome or value that occurs most often within a data set or sample.

Central Tendency

A single number or value that describes the typical or central score among a set of scores.

Frequency Distribution

A mathematical function that shows the number of occurrences of each value of a variable, often represented in a table or graph.

Median

A measure of central tendency; the middle score in a distribution of scores that divides the distribution in half.