ABC Inc Recently Purchased XYZ Inc

question 60

Multiple Choice

ABC Inc. recently purchased XYZ Inc. XYZ had a total market value of $6.2 million. However, ABC actually paid $6.4 million for the acquisition. This acquisition created an asset called _________ of an amount of $0.2 million.

• A) Goodwill.
• B) Depreciation.
• C) Gross profit.
• D) Acquisition cost.
• E) Amortization.

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Definitions:

Political Corruption

The use of powers by government officials or their network contacts for illegitimate private gain, often undermining democracy and the rule of law.

Economic Woes

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Public Agenda

The set of policies or issues that are perceived by the political community as important and in need of attention and action.

Watchdog News

A type of journalism that focuses on exposing misconduct, corruption, and abuses of power in both public and private sectors.