Grayson Ltd

question 3

Multiple Choice

Grayson Ltd. acquired 60% of the outstanding common shares of Goldberg Ltd. for $480,000. At the date of acquisition, Goldberg's shareholders' equity was $625,000. The goodwill at 100% has been determined to be $90,000 under the entity method.
- What is the amount of Goldberg's fair value increments?

• A)$54,000
• B)$70,000
• C)$85,000
• D)$121,000

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Definitions:

Right Crutch

A support device used to aid individuals with mobility issues on their right side.

Four-Point Gait

A walking pattern that uses two crutches or walking sticks along with the legs in a sequence that provides stability and support, especially for people with lower limb disabilities.

Serious Illness

A health condition that is severe in nature, potentially life-threatening, and may require prolonged treatment or hospitalization.

Mobility

Quality of being mobile; easy to move.