Thad LtdAcquired 100% of the Common Shares of Zoe Co

question 32

Multiple Choice

Thad Ltd.acquired 100% of the common shares of Zoe Co.for $560,000.At the time of acquisition,Zoe had the following:

In this acquisition,how much goodwill has been created?

• A)$0
• B)$21,000
• C)$35,000
• D)$56,000

---

Definitions:

Expendable Trust Fund

A fund consisting of assets held in a trust that can be used up or expended, typically for designated purposes as per the trust's terms.

Modified Accrual Accounting

An accounting method that combines aspects of both accrual and cash accounting, recognizing revenues when they are earned and expenses when they are incurred or paid.

Long-Term Debt

Financial obligations of a company that are due more than one year in the future, often including bonds, mortgages, and leases.