River Ltd Pays $5,500,000 for a 70% Share in Stream

question 47

Multiple Choice

River Ltd pays $5,500,000 for a 70% share in Stream Ltd. The net assets acquired in Stream Ltd are valued at $5,000,000. The $500,000 difference will appear in River Ltd's statement of financial position as:

• A)goodwill on consolidation.
• B)mortgage payable.
• C)long-term investment.
• D)acquisition reserve.

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Definitions:

Disputants

Individuals or parties involved in a discord, disagreement, or dispute.

Argument

A discussion in which the parties involved express disagreement with each other's opinions or decisions.

Without Resolving

Continuing in a state of conflict or uncertainty without reaching a conclusion or solution.

Conflict-Habituated Marriage

The partners fight both verbally and physically but don’t believe that fighting is a good reason for divorce.