DBC Ltd Recently Paid $4,000,000 for 60% of JKL Ltd's

question 6

Multiple Choice

DBC Ltd recently paid $4,000,000 for 60% of JKL Ltd's equity. JKL Ltd had total assets of $6,500,000 and liabilities of $1,300,000. What amount of goodwill on consolidation will DBC Ltd record?

• A)$2,700,000
• B)$880,000
• C)$1,200,000.
• D)$100,000.

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Definitions:

Pragmatics

The branch of linguistics dealing with the use of language in social contexts and the ways in which people produce and comprehend meanings through language.

Grammatical Forms

Structures and patterns used in a language to convey meaning and make sentences, including ways to show tense, aspect, mood, and voice.

Adult Weight

The body weight of an individual when they have reached full physical maturity.