ABC Paid $1 Million for a Business and Acquired the Following

question 44

Multiple Choice

ABC paid $1 million for a business and acquired the following assets and liabilities: Which of these entries would be made for goodwill?

• A) Dr Goodwill $50 000
• B) Dr Goodwill $950 000
• C) Cr Goodwill $200 000
• D) Goodwill is not entered in the accounts until the business is sold.

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