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On 1 February 2023, WAT Ltd issues shares with a fair value of $200000 as consideration for the acquisition of a business division from ER
On 1 February 2023, WAT Ltd issues shares with a fair value of $200000 as consideration for the acquisition of a business division from ER Ltd. The recorded assets acquired were as follows. 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 $80000. What is the amount of goodwill that WAT Ltd will recognise for business combination? a. $15000[=$200000$185000] b. $45000[=$200000$155000] c. $95000[=$200000$105000] d. $125000[=$200000$75000]
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