The Balance Sheet of a sole trader is as follows. A company purchased the business, paying for

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The Balance Sheet of a sole trader is as follows.

A company purchased the business, paying for the tangible fixed assets and the net current assets at the valuations shown above.

The company settled the purchase price by issuing 200 000 ordinary shares of $1 at $1.50 per share. How much did the company pay for Goodwill?

A. $30 000

B. $50 000

C. $120 000

D. $150 000

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Accounting A Level And AS Level

ISBN: 9780521539937

1st Edition

Authors: Harold Randall

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Question Posted: Aug 28, 2023 01:37 PM

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The Balance Sheet of a sole trader is as follows. A company purchased the business, paying for

Question:

Fixed assets Intangible: Goodwill Tangible Net current assets $ 30 000 100 000 50 000 180 000

Step by Step Answer:

The company settled the purchase price by issuing 200 000 ordinary shares of 1 at 150 per sh...View the full answer

Accounting A Level And AS Level

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