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Jack N Jill Inc. is planning to buy Snow White Dry Cleaners. The total assets of Snow White are Rs. 1,000,000 whereas the total liabilities
Jack N Jill Inc. is planning to buy Snow White Dry Cleaners. The total assets of Snow White are Rs. 1,000,000 whereas the total liabilities are Rs. 500,000. Jack N Jill Inc. finds out that the fair market value of the asset is only Rs. 800,000. Snow White Dry Cleaners is asking for Rs. 600,000 to sell off the business as a whole. A. What is the fair market value of net assets ? B. What is the amount of goodwill?
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