Falter Acquired 100% of Krystal's Net Assets for $300,000 A)$(48,000)
B)$ 0
C)$36,000
D)$80,000

question 3

Multiple Choice

Falter acquired 100% of Krystal's net assets for $300,000. On the acquisition date, the fair value of the current assets and the net capital assets were $208,000 and $432,000 respectively. The fair value of the liabilities equalled their book value. What is the amount of goodwill created in this acquisition? $\begin{array}{|l|r|r|}\hline& \text { Falter Co. } & \text { Kustal Ltd. } \\\hline \text { Current assets } & \$ 480,000 & \$ 80,000 \\\hline \text { Net capital assets } & \underline{800,000} & \underline{480,000} \\\hline & \$ 1,280,000 & \$ 560,000 \\\hline \text { Current liabilities } & \$ 336,000 & \$ 280,000 \\\hline \text { Long-term debt } & 160,000 & 96,000 \\\hline \text { Share capital } & 720,000 & 1,000,000 \\\hline \text { Retained earnings } & \underline{64,000} & \underline{84,000} \\\hline & \$ \underline{1,280,000} & \$ \underline{560,000} \\\hline\end{array}$

• A)$(48,000)
• B)$ 0
• C)$36,000
• D)$80,000

Describe the entrepreneurial leadership paradigm and its significance.

Identify the critical components of opportunity recognition in entrepreneurship.

Acknowledge the realistic time frame and expectations concerning venture success and venture capital involvement.

Distinguish between myths and realities about entrepreneurs to correct common misconceptions.

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Definitions:

IUPAC

The International Union of Pure and Applied Chemistry, an organization that sets standards for naming chemical compounds and elements, among other activities in the chemistry field.

Hydrogen Bonded

Describes a type of chemical bond that occurs when a hydrogen atom, which is covalently bonded to a highly electronegative atom, forms an electrostatic or partial covalent bond with another electronegative atom.

Tertiary Amides

Amides derived from carboxylic acids where the nitrogen atom is bonded to three other carbon atoms, not including the carbonyl carbon.

Secondary Amides

Organic compounds characterized by a carbonyl group (C=O) attached to a nitrogen atom, which in turn is bonded to two alkyl or aryl groups.