NPlant and Machinery190000Motor Vehicle170000Stock60000Current Liabilities50000Purchase consideration400000Determine the amount of goodwill
A ₦110 000
B ₦ 80 000
C ₦ 90 000
D ₦ 30 000
Answer is D
Purchase Consideration less worth of the business
400,000 – N 370,000
= N30,000
Goodwill is an asset that can not be seen or touched. It is referred to as intangible asset.
Goodwill is generated as may be the good name ot the business, confident of the customers an the product of the business. It is quantifiable by the management an monetary terms.
