Growl Ltd acquires all the issued capital of Tiger Ltd for a cash payment of $5,000,000 on 30 June 2005. The balance sheet of Tiger Ltd at purchase date is:
The fair value of the net assets at the date of purchase was $4,200,000. What amount of goodwill or excess would be recorded in the consolidated statements at the date of purchase?
A) $500,000 goodwill
B) $300,000 discount
C) $800,000 goodwill
D) $389,000 discount
E) None of the given answers.
Correct Answer:
Verified
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