On the Acquisition Date,the Fair Value of Slate's Identifiable Net

question 29

Multiple Choice

On the acquisition date,the fair value of Slate's identifiable net assets was $750 000,which was represented by issued capital of $550 000 and retained earnings of $200 000.If Pristine Company paid $825 000 to acquire all of the issued shares of Slate,what amount of goodwill will be recognised by the group?

• A) $200 000
• B) $0
• C) $75 000
• D) $275 000

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Definitions:

Mitochondria

The organelles within cells that generate most of the cell's supply of ATP, used as a source of chemical energy, and involved in a range of other processes including signaling and cellular differentiation.

Nuclei

Membrane-bound organelles found in eukaryotic cells that contain most of the cell's genetic material.

Chloroplasts

Organelles found in plant and algal cells responsible for photosynthesis, containing the pigment chlorophyll.

Stramenopiles

A diverse group of eukaryotes that includes diatoms, golden algae, and brown algae, characterized by the presence of straw-like hairs on the flagella of their reproductive cells.