CBD Ltd Recently Paid $4,000,000 for 60% of LKJ Ltd's

question 28

Multiple Choice

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

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

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Definitions:

Apples

A fruit from the Malus domestica tree, known for its sweet taste and variety, commonly consumed worldwide and used in numerous culinary dishes.

Oranges

Citrus fruits known for their juicy segments and sweet to tart flavor, rich in Vitamin C and used in both culinary and non-culinary contexts.

Spaghetti Consumption

The amount of spaghetti consumed over a certain period, often used to measure food consumption patterns or preferences.

Consumption

The use of goods and services by households or individuals, often regarded as the final purpose of economic activity.