Grayson Ltd

question 3

Multiple Choice

Grayson Ltd. acquired 60% of the outstanding common shares of Goldberg Ltd. for $480,000. At the date of acquisition, Goldberg's shareholders' equity was $625,000. The goodwill at 100% has been determined to be $90,000 under the entity method.
- What is the amount of Goldberg's fair value increments?

• A)$54,000
• B)$70,000
• C)$85,000
• D)$121,000

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Definitions:

Supplemental Schedules

Additional financial documents provided alongside the main financial statements, offering greater detail or breakdown of information.

Staffing Budget

A financial plan that outlines the funds allocated for hiring and compensating employees.

Service Demands

The consumer's need or desire for services, which can vary based on factors like time, location, and quality preferences.

Capital Expenditures Budget

A budget that outlines planned investments in fixed assets, such as property, plant, and equipment, which are expected to provide benefits over multiple periods.