On 1 January 20X0, Zed Ltd Acquired 100 % of the Share

question 21

Multiple Choice

On 1 January 20X0, Zed Ltd acquired 100 % of the share capital of Ned Ltd for $900 000 cash.At that date, the equity section of Ned Ltd's balance sheet was as follows:
\begin{array}{llcc} \text { } &\$ \\ \text {Share capital } &700000\\ \text {Retained profits } &50000\\ \text {Asset revaluation reserve } &100000\\end{array}

Assuming all assets and liabilities were recorded at their fair values what was the difference on acquisition?

• A)$50 000 goodwill
• B)$50 000 bargain purchase
• C)$100 000 goodwill
• D)$100 000 bargain purchase

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Definitions:

Peripheral Listening

Paying attention to indirect or background information during a conversation, which may offer additional insights.

Active Listening

The practice of fully concentrating, understanding, responding, and remembering what is being said during communication.

Empathy

The ability to understand and share the feelings of another, often crucial in building relationships and effective communication.

Sales Presentation

A detailed pitch or demonstration aimed at persuading a prospect or client to buy a product or service, typically involving visual aids or demonstrations.