E-Learning Time left 0:06:56 Question 7 Answer saved Marked out of 1.00 P Flag question On 1 February 2023, WAT Ltd issues shares with a fair value of $200 000 as consideration for the acquisition of a business division from ER Ltd. The recorded assets acquired were as follows. Records of ER Ltd Fair Value Warehouse $50 000 $70 000 Inventories 25 000 Net assets $75 000 35 000 $ 105 000 The business sale agreement includes the existing customer contracts of ER Ltd. These contracts are not included in ER Ltd's accounting records and have a fair value of $80 000. What is the amount of goodwill that WAT Ltd will recognise for business combination? 0 a. $15 000 [= $200 000 - $185 000] b. 0 . d. $45 000 [= $200 000 - $155 000] $95 000 [= $200 000 - $105