much goodwill did Routing Salutons purchazcas part of the ac
much goodwill did Routing Salutons purchazcas part of the accuiition of Tabletz? OA. $172 500 O C. $57 50 O D. $230000
Solution
Cost of acquisition = 230000
Fair value of assets = 230000
Fair value of liabilities = 115000
Net assets taken over =
Fair value of assets - Fair value of Liabilities
= 230000 - 115000 = 115000
Amount of Goodwill = Cost of acquisition - Net assets taken over
= 230000 - 115000 = 115000
Answer is B. $115000
