Azimuth Company Purchases a Small Business for $450,000

question 152

Multiple Choice

Azimuth Company purchases a small business for $450,000.The market value of the business's assets are $850,000,and the market value of the liabilities are $400,000.How much goodwill should Azimuth record?

• A) None
• B) $500,000
• C) $450,000
• D) $50,000

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Definitions:

Superimposing

The process of laying or placing one thing over another, typically so that both are still evident.

Patterning

The recurring or organized arrangement of elements in a particular sequence or design.

Construct

Bipolar quality or continuum used to classify people.