Raj CoAcquired All of Event Ltd

question 14

Multiple Choice

Raj Co.acquired all of Event Ltd.'s common shares.At the date of acquisition,Event had $80,000 of goodwill resulting from its acquisition of Baker Ltd.a few years ago.At Raj's date of acquisition,what is the proper treatment of Event's $80,000 of goodwill?

• A)Event's goodwill is an identifiable asset and should be included as part of Raj's purchase price discrepancy (PPD).
• B)Event's goodwill is an identifiable asset but should not be included as art of Raj's PPD.
• C)Event's goodwill is not an identifiable asset but should be included as part of Raj's PPD.
• D)Event's goodwill is not an identifiable asset and should not be included as part of Raj's PPD.

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Definitions:

Persuasive Speech

A form of communication aimed at convincing the audience to adopt a particular viewpoint or take a specific action.

Cognitive Dissonance Theory

A theory suggesting that individuals experience discomfort (dissonance) when their beliefs or behaviors are inconsistent, leading them to make changes to reduce this discomfort.

Unhealthy Behaviors

Actions or habits that are detrimental to physical or mental health, such as smoking, poor diet, and lack of exercise.

Confirmation Bias

The bias towards identifying, decoding, choosing, and memorizing details in a manner that validates one's preconceived ideas or suppositions.