IOU Inc Purchased All of the Outstanding Common Shares of UNI

question 39

Multiple Choice

IOU Inc. purchased all of the outstanding common shares of UNI Inc. for $800,000. On the date of acquisition, UNI's assets included $2,000,000 of Inventory, and Land with a book value of $120,000.UNI also had $1,400,000 in liabilities on that date. UNI's book values were equal to their fair market values, with the exception of the company's Land, which was estimated to have a fair market value which was $50,000 higher than its book value.
How much goodwill would be created by IOU's acquisition of UNI?

• A) $30,000
• B) $50,000
• C) $80,000
• D)Nil

---

Definitions:

Family Support

assistance and services provided to families to improve their functioning, well-being, and self-sufficiency.

Family Empowerment

The process of enabling families to increase control over their lives and improve their circumstances.

Empowerment Efforts

Initiatives or activities aimed at giving individuals or groups more power and control over their lives.

Philosophical Beliefs

Fundamental beliefs that guide an individual's way of life and understanding of the world, often forming the basis for ethical decisions and attitudes.