Far-Flung Co Ltd Purchases Local Co Ltd for the Purchase

question 48

Multiple Choice

Far-flung Co Ltd purchases Local Co Ltd for the purchase consideration of: Far-flung incurred legal fees of $6,000 to complete the acquisition.Local Co Ltd had the following assets and liabilities at the time of the purchase:
What is the value of goodwill,if any?

• A) $0
• B) $80,000
• C) $141,000
• D) $86,000
• E) None of the given answers.

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