What Would Be the Amount of the Unamortized Acquisition Differential

question 9

Multiple Choice

What would be the amount of the unamortized acquisition differential (excluding goodwill) at the end of 2019?

• A) Nil.
• B) $35,000.
• C) $37,500.
• D)$42,000.

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Definitions:

Net Incomes

The total earnings of a company after deducting all expenses, taxes, and costs from its total revenues.

Deferred Income Tax

Deferred Income Tax is a liability on a company's balance sheet that results from income already earned and recognized for accounting purposes but not yet subject to taxation.

Fair Value

The estimated market price of an asset or liability, reflecting what a willing buyer would pay to a willing seller in an arm's length transaction.