Azimuth Company Purchases a Small Business for $450,000

question 152

Multiple Choice

Azimuth Company purchases a small business for $450,000.The market value of the business's assets are $850,000,and the market value of the liabilities are $400,000.How much goodwill should Azimuth record?

• A) None
• B) $500,000
• C) $450,000
• D) $50,000

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Definitions:

Glutamate

A major excitatory neurotransmitter in the brain, involved in memory, learning, and the regulation of the nervous system.

Neurotransmitter

Chemical substances released at the end of a nerve fiber by the arrival of a nerve impulse, which, by diffusing across the synapse or junction, causes the transfer of the impulse to another nerve fiber, a muscle fiber, or some other structure.

Memory Formation

The process by which experiences are encoded, stored, and retrieved in the brain.

Acetylcholine

A neurotransmitter in both the peripheral and central nervous systems that is involved in muscle activation, memory formation, and learning.