On 1 July 2014 Good Ltd Acquired a 100% Interest

question 12

Multiple Choice

On 1 July 2014 Good Ltd acquired a 100% interest in Life Ltd.At that time Life Ltd had goodwill of $10 000 recorded in its statement of financial position as a result of a previous business combination.The total goodwill arising on Good's acquisition of Life was $24 000.The goodwill to be recognised on consolidation as a result of Good's acquisition of Life is:

• A)nil.
• B)$10 000.
• C)$14 000.
• D)$24 000.

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