-Using the Fair Value (100% Goodwill)method the Goodwill on Acquisition

question 2

Multiple Choice

-Using the fair value (100% goodwill) method the goodwill on acquisition is:

• A) $140,000
• B) $186,000
• C) $70,000
• D) none of the above

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Definitions:

Return On Investment

Return on investment (ROI) is a financial metric used to evaluate the efficiency of an investment, calculated as the net profit divided by the cost of the investment.

ROI

Return on Investment is a performance measure used to evaluate the efficiency or profitability of an investment relative to its cost.

Residual Income

The amount of income that an entity has after all personal debts and expenses, including a mortgage, have been paid.

Residual Income

A measure of profitability that calculates the net income an investment or division generates above a specified minimum return.