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:

Childhood Aggression

Relates to aggressive behaviors and tendencies exhibited by children, which can include physical violence, verbal threats, or acts of defiance.

Family Environment

The social and emotional atmosphere in which a person grows up or lives.

Socioeconomic Status

An individual's or group's position within a hierarchical social structure, which is often determined by a combination of income, education, and occupation.

Hypothesis

An initial explanation offered for a phenomenon that serves as a basis for ongoing exploration.