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Trade Wind Ltd Acquired All the Shares in Clear Wind

Question 21

Multiple Choice

Trade Wind Ltd acquired all the shares in Clear Wind Ltd at a cost of $1 250 000.The fair value of the assets acquired was $1 450 000 and the fair value of the liabilities assumed was $450 000.The amount of goodwill acquired by Trade Wind Ltd is:


A) $1 000 000
B) $200 000
C) $250 000
D) $850 000

Correct Answer:

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