REQUIRED : Determine the amount of goodwill (if any) implied in the purchase price of RM2,095,000. Show calculations.

(1 Marks) (f)Gigih Manufacturing Bhd decided to expand further by purchasing Puncak Jaya Bhd. The statement of financial position of Puncak Jaya Bhd as of 31 December 2019 was as follows: Puncak Jaya Bhd Statement of Financial Position 31 December 2019 Assets Plant (net) Inventory Receivables Cash RM1,025,000 275,000 550.000 210,000 Equity and Liabilities Share capital-ordinary Retained earnings Accounts payable RM 800,000 885.000 375,000 Total assets 2.060.000 Total equity & liabilities 2.060.000 An assessment report, agreed by both parties, indicated that the fair value of the inventory was RM350,000 and the fair value of the plant was RM1,125.000. The fair value of the receivables is equal to the amount reported on the statement of financial position. The agreed purchase price was RM2.095.000, and this amount was paid in cash to the previous owners of Puncak Jaya Bhd. 5