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ABC Paid $1 Million for a Business and Acquired the Following

Question 18

Multiple Choice

ABC paid $1 million for a business and acquired the following assets and liabilities: ABC paid $1 million for a business and acquired the following assets and liabilities: Which of these entries would be made for goodwill? A) Dr Goodwill $50 000 B) Dr Goodwill $950 000 C) Cr Goodwill $200 000 D) Goodwill is not entered in the accounts until the business is sold. Which of these entries would be made for goodwill?


A) Dr Goodwill $50 000
B) Dr Goodwill $950 000
C) Cr Goodwill $200 000
D) Goodwill is not entered in the accounts until the business is sold.

Correct Answer:

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