Amber Ltd Purchased 80% of Patel Ltd

question 38

Multiple Choice

Amber Ltd. purchased 80% of Patel Ltd. for $1,000,000. At the time of acquisition, the carrying value of Patel's net identifiable assets was $1,000,000 and the fair value was $1,350,000. What is the amount of the goodwill under the entity method?

• A)$(100,000)
• B)$100,000
• C)$280,000
• D)$350,000

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