Question on: WAEC Accounting - 1997

Use the following information to answer this question

A business whose assets consisted of stock N15,000 and debtors N8,000 was bought by issuing 20,000 ordinary shares of N1 each at a premium of 20 percent.

The amount of goodwill was
A
N4,000
B
N3,000
C
N2,000
D
N1,6000
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Correct Option: E

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