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:

Developmental Disabilities

A diverse group of chronic conditions due to mental or physical impairments that arise during the developmental phase, affecting life activities.

Prenatal Health Care

Medical and health services provided to a woman during pregnancy to ensure the well-being of both mother and fetus.

Pregnancy Complications

Health problems that occur during pregnancy, which can involve the mother's health, the baby's health, or both.

Neural Tube

The embryonic precursor to the central nervous system, consisting of a tube that eventually forms the brain and spinal cord.