Cheers Acquired 100% of Tapp's Shares for $150,000

question 15

Multiple Choice

Cheers acquired 100% of Tapp's shares for $150,000.On the acquisition date,the fair value of the current assets and the net capital assets were $104,000 and $216,000 respectively.The fair value of the liabilities equalled their book value.What is the amount of goodwill created in this acquisition?

• A)$(24,000)
• B)$ 0
• C)$18,000
• D)$40,000

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Definitions:

Brain

The organ located in the head of vertebrates that coordinates the body's actions and reactions by transmitting signals to and from different parts of the body.

Primate Order

A category in the classification of mammals that includes humans, apes, monkeys, and their close relatives, characterized by advanced brain development, opposable thumbs, and typically binocular vision.

Species

A collection of living beings made up of alike entities that can share genes or reproduce with each other.

SARGP2 Gene

A gene that may be involved in various biological processes and could be subject to genetic studies, but its specific role is unclear without context. If it doesn't refer to a known gene, the response would be "NO."