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Earth Ltd Acquired Moon Ltd on 1 July 2009 for the Sum

Question 37

Multiple Choice

Earth Ltd acquired Moon Ltd on 1 July 2009 for the sum of $100,000. On the same date Moon Ltd has the following assets and liabilities:
Earth Ltd acquired Moon Ltd on 1 July 2009 for the sum of $100,000. On the same date Moon Ltd has the following assets and liabilities:   What is the value of goodwill, if any? A)  Not required to recognise goodwill. B)  $35,000 C)  $75,000 D)  Surplus of $5,000 E)  None of the given answers.
What is the value of goodwill, if any?


A) Not required to recognise goodwill.
B) $35,000
C) $75,000
D) Surplus of $5,000
E) None of the given answers.

Correct Answer:

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