Use the following information to answer the que... - WAEC Accounting 2015 Question
Use the following information to answer the question below
Mr White acquired Mr Black's business for GH¢ 410,000. The total assets were GH¢ 670,000 and liabilities amounted to GH¢ 320,000.
How much was paid for goodwill?
A
GH¢ 350,000
B
GH¢ 260,000
C
GH¢ 90,000
D
GH¢ 60,000
correct option: d
Assets 670,000 - liabilities 320,000 = 350,000 (business value after liabilities claims)
Purchase price 410,000 - 350,000 business value = 60,000 goodwill
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